Credit Rating
Definition of Corporate Credit Rating
The corporate Credit Rating is an index that measures the degree of credit risk by calculating the creditworthiness of a company in terms of debt repayment ability and debt soundness, etc.
In addition to major financial information, we also take into consideration non-financial information at the time of evaluation, such as the summary of company and credit information, so that timely and realistic evaluation is possible.
※ The above information is based on the information provided by “Nice Information Service Co., Ltd.”.
Credit Rating Definition
| Credit Rating | Definition of Rating | Cumulative Distribution | |
|---|---|---|---|
| AAA | AAA | The highest level of ability to repay debt | 0.01% |
| AA | AA+, AA, AA- | The ability to repay debt is very good, but there are some inferior factors compared to AAA | 0.05% |
| A | A+, A, A- | The ability to repay debt is superior, but more likely to be affected by economic downturn and environmental changes compared to the upper grades | 0.5% |
| BBB | BBB+, BBB, BBB- | The ability to repay debt is good, but it is possible that the ability to fulfill the obligation will be deteriorated due to the economic downturn and changes in the environment in the future | 12% |
| BB | BB+, BB, BB- | There is no problem with the performance of debt repayment, but speculative factors are indicated in terms of stability in accordance with changes in economic conditions and market conditions | 40% |
| B | B+, B, B- | Although there is the ability to repay debt, there is a possibility of default in case of weakening the economic environment in the future and it is speculative in terms of stability | 83% |
| CCC | CCC+, CCC, CCC- | It is very speculative because it implies the possibility of defaulting at present | 92% |
| CC | CC | There is a high probability of default | 94% |
| C | C | It is very likely to default | 98% |
| D | D | Currently in default status | 100% |
| NCR | NCR | Unauthorized acts such as false and forgery/alteration data submission were confirmed, and existing grades were canceled, suspended, changed | - |
※ Depending on the needs of the evaluator, each grade can be subdivided into +, 0, -.