HomeMy WebLinkAbout09/16/2014 Council Presentation - Bond RatingsMoody'sStandard & Poor'sFitchDescriptionCredit Worthiness
An obligor has EXTREMELY STRONG capacity to meet its
AaaAAAAAAPrime
financial commitments.
Aa1AA+AA+
An obligor has VERY STRONG capacity to meet its financial
High Grade
Aa2AAAA
commitments. It differs from the highest rated obligors only in
Aa3AA-AA-small degree.
A1A+A+An obligor has STRONG capacity to meet its financial
Upper
commitments but is somewhat more susceptible to the adverse
A2AA
Medium
effects of changes in circumstances and economic conditions
Grade
A3A-A-
than obligors in higher-rated categories.
Baa1BBB+BBB+An obligor has ADEQUATE capacity to meet its financial
Lower
commitments. However, adverse economic conditions or
Baa2BBBBBB
Medium
changing circumstances are more likely to lead to a weakened
Grade
Baa3BBB-BBB-
capacity of the obligor to meet its financial commitments.
Ba1BB+BB+An obligor is LESS VULNERABLE in the near term than other
Non-lower-rated obligors. However, it faces major ongoing
Ba2BBBB
investment uncertainties and exposure to adverse business, financial, or
Speculativeeconomic conditions which could lead to the obligor's
Ba3BB-BB-
inadequate capacity to meet its financial commitments.
B1B+B+An obligor is MORE VULNERABLE than the obligors rated 'BB',
but the obligor currently has the capacity to meet its financial
B2BB
Highly
commitments. Adverse business, financial, or economic
Speculative
conditions will likely impair the obligor's capacity or willingness
B3B-B-
to meet its financial commitments.
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