A- / A3

Deciphering A-/A3 Ratings: What You Need to Know

Explore the world of A-/A3 ratings, essential indicators of long-term investment grade bond creditworthiness. Delve into the significance of these ratings issued by Moody's and Standard & Poor's (S&P), and understand their implications for investors and debt issuers.

Understanding A-/A3 Ratings

Learn about A-/A3 ratings, which signify medium-level investment grade credit ratings for debt issuers. Gain insights into how these ratings reflect an issuer's financial stability, cash reserves, and risk of default, providing crucial information for investors.

Navigating the Credit Rating System

Discover the intricacies of the credit rating system, including the hierarchy of ratings from highest to lowest within the investment grade category. Understand where A-/A3 ratings stand in comparison to other ratings issued by Moody's and S&P.

Illustrative Example of A-/A3 Ratings

Explore a hypothetical scenario involving XYZ Corp, illustrating how companies are assigned A-/A3 ratings based on their financial performance and creditworthiness.

Special Considerations: Credit Downgrades

Learn about the potential repercussions of credit downgrades, such as the reclassification of debt from investment grade to junk status. Understand how downgrades can impact a company's ability to source financing and increase costs of capital.