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Credit Rating Agency Criteria

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AAA

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AAA is the highest credit quality, with the lowest risk of default. Bonds with AAA ratings are considered to be of the highest creditworthiness.

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AA

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AA rating signifies a very high credit quality. Although slightly riskier than AAA, entities are still expected to have very strong capacity to meet financial obligations.

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CCC

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CCC rating suggests that the entity is at real risk of defaulting and depends on favorable business, financial, and economic conditions to meet financial commitments.

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CC

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CC rating indicates that the entity is currently highly vulnerable to nonpayment and is dependent on favorable business, financial, and economic conditions to meet financial commitments.

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D

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D rating means the entity has defaulted on its financial commitments. This rating is assigned when an issuer fails to make a payment or a bankruptcy petition is filed.

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BBB

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BBB rating represents a medium credit quality and a moderate risk of default for investors. It is the lowest investment-grade rating.

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A

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A rating indicates high credit quality, but more susceptibility to adverse business or economic conditions compared to AA/AAA.

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BB

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BB rating indicates that the entity has speculative elements, with a higher risk of default. However, it maintains a less vulnerable financial standing than lower-rated bonds.

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B

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B rating implies that the entity has significant speculative characteristics and a relatively high credit risk. The financial situation depends on favorable business conditions to meet commitments.

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C

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C rating shows that the entity is currently highly vulnerable to nonpayment and is likely in, or very near, default, with some prospect of recovery of principal and interest.

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