What does A1 credit rating mean?

What does A1 credit rating mean? The A+/A1 rating signifies that the issuer or carrier has stable financial backing and ample cash reserves. The risk of default for investors or policyholders is very low.

The A+/A1 rating signifies that the issuer or carrier has stable financial backing and ample cash reserves. The risk of default for investors or policyholders is very low.

What is S&P rating scale?

The scale runs from A-1 to D. An A-1 rating may be designated with a plus sign (+) to indicate that the issuer’s commitment to meet its obligation is extremely strong. A-1, A-2, A-3 (from best quality to good quality but somewhat vulnerable to changing economic conditions).

What is the Moody rating scale?

In Moody’s Investors Service’s ratings system, securities are assigned a rating from Aaa to C, with Aaa being the highest quality and C the lowest quality. Moody’s was founded by John Moody in 1909 to produce manuals of statistics related to stocks and bonds and bond ratings.

Is baa1 an investment grade?

Investors typically group bond ratings into 2 major categories: Investment-grade refers to bonds rated Baa3/BBB- or better. High-yield (also referred to as “non-investment-grade” or “junk” bonds) pertains to bonds rated Ba1/BB+ and lower.

What does A1 credit rating mean? – Related Questions

Is BB better than BBB?

Investors should be aware that an agency downgrade of a company’s bonds from ‘BBB’ to ‘BB’ reclassifies its debt from investment grade to “junk” status. Although this is merely a one-step drop in credit rating, the repercussions can be severe.