Standard & Poor's (S&P) Rating Scale

Standard & Poor's publishes financial research and analysis on stocks and bonds, including issuing both long-term and short-term credit ratings for the debt of companies.

Long-Term Credit Ratings

S&P rates companies on a scale from AAA to D. Intermediate ratings are offered at each level between AA and B. For some companies, S&P may also offer guidance as to whether it is likely to be upgraded (positive), downgraded (negative) or uncertain (neutral).

Investment Grade

• AAA: the best quality companies, reliable and stable
• AA: quality companies, a bit higher risk than AAA
• A: economic situation can affect finance
• BBB: medium class companies, which are satisfactory at the moment

Non-Investment Grade

• BB: more prone to changes in the economy
• B: financial situation varies noticeably
• CCC: currently vulnerable and dependent on favorable economic conditions to meet its commitments
• CC: highly vulnerable, very speculative bonds
• C: highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
• CI: past due on interest
• R: under regulatory supervision due to its financial situation
• SD: has selectively defaulted on some obligations
• D: has defaulted on obligations and S&P believes that it will generally default on most or all obligations
• NR: not rated