Category

Definition

AAA

The possibility of repaying the principal and interest is the highest.

AA

The possibility of repayment of principal and interest is very high, but it is somewhat lower than that of the higher grade (AAA).

A

Although it is highly likely to repay principal and interest, it is more likely to be affected by economic conditions and environmental changes compared to the upper grade (AA).

BBB

Although the possibility of repayment of principal and interest is recognized to a certain extent, it is likely to deteriorate due to economic conditions and environmental changes compared to the upper grade (A).

BB

It has speculative elements because uncertainty is implied in the possibility of repayment of principal and interest.

B

The uncertainty over the possibility of repayment of principal and interest is significant, which is more speculative than the upper grade (BB)

CCC

The risk of default is high and the possibility of repayment of principal and interest is questioned.

CC

The risk of default is very high and the possibility of repayment of principal and interest is slim.

C

The risk of default is extremely high and there is no possibility of repayment of principal and interest.

D

It is in a non-repayable state.