What is A+ and A1 credit?

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A+/A1 are credit ratings produced by ratings agencies S&P and Moody’s. Both A+ and A1 fall in the middle of the investment-grade category, indicating some but low credit risk. Credit ratings are used by investors to gauge the creditworthiness of issuers, with better credit ratings corresponding to lower interest rates.

What are the ratings of commercial paper?

Rating Agencies

Term Rating	CP Rating
AAA to AA	Tier-1+
AA- to A	Tier-1
A- to BBB	Tier-2
BBB- and lower	Tier-3 and lower

What is CARE A+ rating?

Issuers with this rating are considered to offer high degree of safety regarding timely servicing of financial obligations. Such issuers carry very low credit risk. CARE A (Is) Issuers with this rating are considered to offer adequate degree of safety regarding timely servicing of financial obligations.

What is a 1 rating?

A-1 An obligor rated ‘A-1’ has strong capacity to meet its financial commitments. It is rated in the highest category by S&P Global Ratings.

What does Moody’s A1 rating mean?

Moody’s. Moody’s uses the term A1 to indicate the safety of long-term (over one year) credit obligations. Moody’s uses the term A to indicate obligations with low credit risk. In addition to the letter grade, Moody’s adds a 1, 2, or 3 to the letter with 1 being a higher grade and 3 being a lower grade.

What is a A1 credit rating?

Standard & Poor’s uses the term A-1 when rating an insurer’s ability to meet debt obligations in the short term. A-1 indicates that the insurer has a strong ability to meet its debt obligations. A-1 is the highest rating that Standard & Poor’s issues for short-term debt.

What is a-1 rating?

What is the highest rating for commercial paper?

Obligations rated A-1+ for short-term debt by Standard & Poor’s Ratings Service are the highest rating assigned by Standard & Poor’s. This rating indicates the obligor’s capacity to meet its financial commitments on the obligation are extremely strong. Fitch Ratings AAA are the highest credit quality.

Does commercial paper have a credit rating?

Commercial paper is a short-term, unsecured debt instrument with a duration of 1-270 days. Financial institutions and large corporations are the main issuers of commercial paper because they have high credit ratings.

What does A1 credit rating mean?

Moody’s uses the term A1 to indicate the safety of long-term (over one year) credit obligations. Moody’s uses the term A to indicate obligations with low credit risk. In addition to the letter grade, Moody’s adds a 1, 2, or 3 to the letter with 1 being a higher grade and 3 being a lower grade.

What is a 2 rating?

A-2 An obligor rated ‘A-2’ has satisfactory capacity to meet its financial commitments. However, it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in the highest rating category.

What are the different types of commercial paper ratings?

In the U.S., the three rating agencies utilize three generic commercial paper ratings in order of credit quality from high to low: tier-1, tier-2, and tier-3 Standard & Poor’s and Fitch have also used a plus (+) with respect to their tier-1 rating to denote overwhelming safety (not so Moody’s)

What is a Tier-1 rating on commercial paper?

In the case of commercial paper, the rating agencies are evaluating the creditworthiness of an unsecured promissory note, with maturities ranging from 1 to 270 days Standard & Poor’s and Fitch have also used a plus (+) with respect to their tier-1 rating to denote overwhelming safety (not so Moody’s)

What is commercial paper?

Should a-issuers have Tier-1 access to short-term commercial paper?

Certainly, the market’s message is that an A- issuer in the longer-term term debt capital market is worthy of tier-1 access in the shorter-term commercial paper market Put simply, the ratings agencies should add pluses (+) and minuses (-) to both the tier-1 and tier-2 commercial rating categories