User Tools

Site Tools


en:fitch-ratings

Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Both sides previous revision Previous revision
Next revision
Previous revision
en:fitch-ratings [2018/02/26 07:09]
federico
en:fitch-ratings [2018/08/01 07:43] (current)
federico
Line 1: Line 1:
-====== Fitch Ratings ======+====== Fitch Ratings ​Scale ======
  
 {{ :​es:​fitch.png?​nolink|}} {{ :​es:​fitch.png?​nolink|}}
Line 15: Line 15:
   * Preferred stocks   * Preferred stocks
   * Mortgage backed instruments   * Mortgage backed instruments
 +
 +===== Scale =====
 +
  
 Credit Ratings give an asessment to financial instruments. For example, an "​investment grade" asset can have the following ratings: Credit Ratings give an asessment to financial instruments. For example, an "​investment grade" asset can have the following ratings:
Line 36: Line 39:
 It is considered that an institution with a better rating (AAA) has a lower default risk than an institution with a worse rating (BBB). ​ It is considered that an institution with a better rating (AAA) has a lower default risk than an institution with a worse rating (BBB). ​
  
 +Fitch Rating Scale:
 +
 +**Investment Grade**:
 +  * **AAA**: the best grade. This grade is given to stable and reliable companies. As of 2018, in US only Microsoft and Johnson & Johnson are rated AAA
 +  * **AA**: these are quality companies that have very strong capacity to meet it's financial obligations but a little more riskier that AA companies. ​
 +  * **A**: Strong capacity to meet it's obligations. This capacity may be more vulnerable to changes in economic conditions.
 +  * **BBB**: these are medium class companies. There is a low expectation of interrupted payments, but changes in circumstances are more likely to impact it's capacity. ​
 +
 +** Non-investment grade **
 +The probability that the company will repay it's debt is deemed to be speculative. ​
 +
 +  * **BB**: company'​s payment capacity is prone to changes in the economy.
 +  * **B**: the financial situation of the company varies noticeably. ​
 +  * **CCC**: the current situation of the company is vulnerable. The company depends on favorable conditions to meet it's commitments.
 +  * **CC**: ​ very vulnerable
 +  * **C**: the company or issuer can be in bankrupcy, but it's still paying it's obligations.
 +  * **D**: the company has defaulted, and Fitch believes it will default most of the future obligations.
 +  * **NR**; Not Rated
  
 Fitch ratings for selected countries: Fitch ratings for selected countries:
en/fitch-ratings.1519646973.txt.gz · Last modified: 2018/02/26 07:09 by federico