Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Pay Your Bills On Time

Pay Your Bills On Time - We all get behind on our bills every once in a while, but when it becomes a constant practice it starts to cost us...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Sp Credit Rating

Standard & Poors (S&P) is a division of the McGraw-Hill publishing company that provides financial research and in-depth analysis on stocks and bonds offered in some of the world's best-known markets. S&P is not only involved with stock market indexes like the S&P 500 on the New York Stock Exchange and Canada's S&P/TSX index, but the S&P credit rating is one of the most important credit rating systems in the world.

The S&P credit rating system issues ratings for the debt of both public and private corporations. Its influence is substantial; it is recognized by the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization. The S&P credit rating can be either a short-term or long-term rating.

S&P credit ratings for the long term are judged on a scale from AAA to D. There are a large number of intermediate ratings at each level between AA and CCC. In addition to the ratings, S&P can offer a "credit watch" that can serve as a boost or a burden to a borrower. If S&P changes the credit rating upward (an upgrade), it is a great positive; a downgrade means S&P is worried about the borrower's situation. It can also issue a neutral rating.

Borrowers with a rating of AAA are the highest quality borrowers and can get better rates of return on bonds they issue or better interest rates on loans. A AA rating is also highly regarded, with an A rating also more than accepted. A BBB rating is considered medium class, or satisfactory. BB to CCC ratings are considered non-investment grade (or "junk bonds"); anything lower indicates the borrower in question is in severe financial trouble.

Short-term credit ratings for issuers are established on a scale from A-1 to D. An A-1 rating means the issue has a strong ability to meet its financial commitment; an A-2 or A-3 rating means the issuer can meet its commitments, but economic conditions could weaken it. A B rating means the issuer can meet its obligations but could face problems in the near future; a C or D rating means the issuer is in trouble.

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Convertible Auction Rate Preferred Stock

Convertible Auction Rate Preferred Stock - a convertible auction rate preferred stock is a certain type of an auction related preferred stock that can be converted into shares of the underlying security an underlying security is a commodity or security, which is subject to delivery when an option is exercised...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com