Ratings notches

S&P

Investment Grade

• Template:S&P: An obligor rated 'AAA' has extremely strong capacity to meet its financial commitments. 'AAA' is the highest issuer credit rating assigned by Standard & Poor's.
• Template:S&P: An obligor rated 'AA' has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree. Includes:
  • Template:S&P: equivalent to Moody's Template:Moodys (high quality, with very low credit risk, but susceptibility to long-term risks appears somewhat greater)
  • Template:S&P: equivalent to Template:Moodys
  • Template:S&P: equivalent to Template:Moodys
• Template:S&P: An obligor rated 'A' has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.
  • Template:S&P: equivalent to {{moodys|A1
  • Template:S&P: equivalent to {{moodys|A2
• Template:S&P: An obligor rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.

Non-Investment Grade (also known as junk bonds)

• Template:S&P: An obligor rated 'BB' is less vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions, which could lead to the obligor's inadequate capacity to meet its financial commitments.
• Template:S&P: An obligor rated 'B' is more vulnerable than the obligors rated 'BB', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitments.
• Template:S&P: An obligor rated 'CCC' is currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.
• Template:S&P: An obligor rated 'CC' is currently highly vulnerable.
• Template:S&P: highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
• Template:S&P: past due on interest
• Template:S&P: An obligor rated 'R' is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others.
• Template:S&P: has selectively defaulted on some obligations
• Template:S&P: has defaulted on obligations and S&P believes that it will generally default on most or all obligations
• Template:S&P: not rated

Moody's

Moody's credit ratings
Investment grade
Rating	Long-term ratings	Short-term ratings
Template:Moodys	Rated as the highest quality and lowest credit risk.	Prime-1 Best ability to repay short-term debt
Template:Moodys	Rated as high quality and very low credit risk.
Template:Moodys
Template:Moodys
Template:Moodys	Rated as upper-medium grade and low credit risk.
Template:Moodys		Prime-1/Prime-2 Best ability or high ability to repay short term debt
Template:Moodys
Template:Moodys	Rated as medium grade, with some speculative elements and moderate credit risk.	Prime-2 High ability to repay short term debt
Template:Moodys		Prime-2/Prime-3 High ability or acceptable ability to repay short term debt
Template:Moodys		Prime-3 Acceptable ability to repay short term debt
Speculative grade
Rating	Long-term ratings	Short-term ratings
{{moodys|a1	Judged to have speculative elements and a significant credit risk.	Not Prime Do not fall within any of the prime categories
Template:Moodys
Template:Moodys
Template:Moodys	Judged as being speculative and a high credit risk.
Template:Moodys
Template:Moodys
Template:Moodys	Rated as poor quality and very high credit risk.
Template:Moodys
Template:Moodys
Template:Moodys	Judged to be highly speculative and with likelihood of being near or in default, but some possibility of recovering principal and interest.
Template:Moodys	Rated as the lowest quality, usually in default and low likelihood of recovering principal or interest.