Guide to Best's Debt Ratings Effective October 02, 2007
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A Best's Debt Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation, of a company's balance sheet strength, operating performance and business profile.
Our rating process incorporates specific methodologies designed to address Debt Ratings and the credit marketplace. Read 'A.M. Best's Ratings and the Treatment of Debt', which outlines the relationship between Best's Financial Strength Ratings and Debt Ratings.
A complete list of Best's Rating Methodologies, including Commercial Paper and Closed-Block Monetization, are available and continually fine-tuned to reflect ever-changing industry, regulatory and legal developments. |
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Please note that Best's Debt Ratings are not a warranty of a company's financial strength and ability to meet its financial obligations. View our entire notice for complete details.
Debt Ratings
A Best's Long-Term Debt Rating (issue credit rating) is an opinion as to the issuer's ability to meet its financial obligations to security holders when due. These ratings are assigned to debt and preferred stock issues.
Ratings from "aa" to "ccc" may be enhanced with a "+" (plus) or "-" (minus) to indicate whether credit quality is near the top or bottom of a category. A company's Long-Term Credit Rating also may be assigned an Under Review modifier ("u") that generally is event-driven (positive, negative or developing) and indicates that the company's Best's Rating opinion is under review and may be subject to near-term change.
A.M. Best's Long-Term Credit Rating Scale is used when assigning a Best's Long-Term Debt Rating. The list below outlines the specific ratings and descriptions in this area.
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Long-Term Debt Ratings |
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Investment Grade
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Non-Investment Grade |
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aaa (Exceptional) |
bb (Speculative) |
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aa (Very Strong) |
b (Very Speculative) |
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a (Strong) |
ccc, cc, c (Extremely Speculative) |
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bbb (Adequate) |
d (In Default) |
Note: Debt Ratings displayed with an (i) denote indicative ratings
A Best's Short-Term Debt Rating is an opinion as to the issuer's ability to meet its obligations having maturities generally less than one year, such as commercial paper. The list below outlines the specific ratings in this area along with the associated descriptions.
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Short-Term Debt Ratings |
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Investment Grade
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Non-Investment Grade |
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AMB-1+ (Strongest) |
AMB-4 (Speculative) |
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AMB-1 (Outstanding) |
d (In Default) |
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AMB-2 (Satisfactory) |
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AMB-3 (Adequate) |
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Rating Outlook
Best's Long-Term Credit Ratings (aaa to c) are assigned a Rating Outlook that indicates the potential direction of a company's rating for an intermediate period, generally defined as the next 12 to 36 months. Rating Outlooks include Positive, Negative and Stable. View our online Guide to Best's Debt Ratings for complete definitions on Outlooks.
Usage of Best's Ratings
Best's Ratings are proprietary and may not be reproduced without permission from A.M. Best. View our Legal and Licensing information for details on the use of A.M. Best trademarks, logos and service marks.
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