What is AAA & AA ? AAA means Highest Safty Deposit.
Credit ratings are forward-looking opinions about credit risk. Credit ratings can also speak to the credit quality of an individual debt issue, such as a corporate note, bond or Company Deposit, and the relative likelihood that the issue may default.
Each agency applies its own methodology in measuring creditworthiness and uses a specific rating scale to publish its ratings opinions.
‘AAA’ to ‘D’ to communicate the agency opinion of relative level of credit risk.
Rating Scale For Fixed Deposits
Notes:
1. Rating of AA+ and A+ are one notch higher than AA and A respectively, while AA- and A- are one notch lower than AA and A resepctively.
2. For ICRA rating Starting Letter L indicate Long term deposit and M indicate Midium Term Deposit.
Source : ICRA, CRISIL
Credit ratings are forward-looking opinions about credit risk. Credit ratings can also speak to the credit quality of an individual debt issue, such as a corporate note, bond or Company Deposit, and the relative likelihood that the issue may default.
Each agency applies its own methodology in measuring creditworthiness and uses a specific rating scale to publish its ratings opinions.
‘AAA’ to ‘D’ to communicate the agency opinion of relative level of credit risk.
Rating Scale For Fixed Deposits
| CRISIL | ICRA | Safty Measure | Description | |
| FAAA | MAAA | Highest Safety | This rating indicates that the degree of safety regarding timely payment of interest and principal is very strong. | |
| FAA | MAA | High Safety | This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings. | |
| FA | MA | Adequate Safety | This rating indicates that the degree of safety regarding timely payment of interest and principal is satisfactory. Changes in circumstances can affect such issues more than those in the higher rated categories. | |
| FB | MB | Inadequate Safety | This rating indicates inadequate safety of timely payment of interest and principal. Such issues are less susceptible to default than fixed deposits rated below this category, but the uncertainties that the issuer faces could lead to inadequate capacity to make timely interest and principal payments. | |
| FC | MC | High Risk | This rating indicates that the degree of safety regarding timely payment of interest and principal is doubtful. Such issues have factors present that make them vulnerable to default; adverse business or economic conditions would lead to lack of ability or willingness to pay interest or principal. | |
| FD | MD | Default | This rating indicates that the fixed deposits are either in default or are expected to be in default upon maturity. | |
| NM | -- | Not Meaningful | Instruments rated 'NM' have factors present in them, which render the outstanding rating meaningless. These include reorganisation or liquidation of the issuer, and the obligation being under dispute in a court of law or before a statutory authority. |
Notes:
1. Rating of AA+ and A+ are one notch higher than AA and A respectively, while AA- and A- are one notch lower than AA and A resepctively.
2. For ICRA rating Starting Letter L indicate Long term deposit and M indicate Midium Term Deposit.
Source : ICRA, CRISIL
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