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Rating Definitions

Rating of Bonds

Rating Definitions

Rating Definitions
Rating Definitions
AAA Capacity for timely payment is extremely strong.
AA Capacity for timely payment is very strong, but somewhat less than 'AAA'
A Capacity for timely payment is strong, but somewhat susceptible to external changes in the future.
BBB Capacity for timely payment is adequate, but more likely to be weakened by future market changes
BB Capacity for timely payment faces no immediate problems, but speculative in its future stability
B Capacity for timely payment is poor and speculative.
CCC Contain the possibility of default
CC Contain more possibility of default
C Highly likely default
D In default at the present time

* The ratings from 'AA' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.

Rating Outlook

Rating Outlook
Rating Outlook Definitions
Stable A rating is not likely to change within 1~2 years of time period
Positive A rating is likely to upgrade within 1~2 years of time period
Negative A rating is likely to downgrade within 1~2 years of time period
Evolving A rating is likely to upgrade, downgrade or stay within 1~2 years of time period.
A rating change is uncertain
None A rating is 'C' or 'D' , or under the Rating Watch
  1. Rating Outlook is assigned only to issuers or long-term debts (Structured finance excl).
  2. Rating Outlook is not necessarily a precursor of a rating change or future credit watch action. In other words, the rating may change in different with the rating outlook.

Rating Watch

Rating Watch
Rating Watch Sign Definitions
Positive Review When a probable cause for upgrade of a rating occurs. A rating may be upgraded.
Evolving When possible direction of a rating adjustment is uncertain. A rating may be raised, lowered or affirmed.
Negative Review When a probable cause for downgrade of a rating occurs. A rating may be lowered.

Rating of Commercial Papers

Rating Definitions

Rating Definitions
Rating Definitions
A1 Capacity for timely payment is the strongest and hardly likely to be adversely affected by foreseeable events.
A2 Capacity for timely payment is strong, but not as great as A1 ratings in terms of the margin of safety.
A3 Capacity for timely payment is adequate but, likely to be impaired by drastic changes in circumstances and economic conditions
B Capacity for timely payment is doubtful and speculative as more likely to be impaired by adverse changes in circumstances and economic conditions
C Capacity for timely payment and its safety is very vulnerable to near-term adverse changes in financial and economic conditions and very speculative
D In default as of present time.

* The ratings from 'A2' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.

Rating Watch

Rating Watch
Rating Watch Sign Definitions
Positive Review When a probable cause for upgrade of a rating occurs. A rating may be upgraded.
Evolving When possible direction of a rating adjustment is uncertain. A rating may be raised, lowered or affirmed.
Negative Review When a probable cause for downgrade of a rating occurs. A rating may be lowered.

Issuer Credit Rating

Rating Definitions

Rating Definitions
Rating Definitions
AAA Issuer's capacity for timely payment is extremely strong.
AA Issuer's capacity for timely payment is very strong, but somewhat less than 'AAA'
A Issuer's capacity for timely payment is strong, but somewhat susceptible to external changes in the future.
BBB Issuer's capacity for timely payment is adequate, but more likely to be weakened by future market changes
BB Issuer's capacity for timely payment faces no immediate problems, but speculative in its future stability
B Issuer's capacity for timely payment is poor and speculative.
CCC Contain the possibility of default
CC Contain more possibility of default.
C Highly likely default.
D In default at the present time.

* The ratings from 'AA' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.

Rating Outlook

Rating Outlook
Rating Outlook Definitions
Stable A rating is not likely to change within 1~2 years of time period
Positive A rating is likely to upgrade within 1~2 years of time period
Negative A rating is likely to downgrade within 1~2 years of time period
Evolving A rating is likely to upgrade, downgrade or stay within 1~2 years of time period.
A rating change is uncertain
None A rating is 'C' or 'D' , or under the Rating Watch
  1. Rating Outlook is assigned only to issuers or long-term debts (Structured finance excl).
  2. Rating Outlook is not necessarily a precursor of a rating change or future credit watch action. In other words, the rating may change in different with the rating outlook.

Rating Watch

Rating Watch
Rating Watch Sign Definitions
Positive Review When a probable cause for upgrade of a rating occurs. A rating may be upgraded.
Evolving When possible direction of a rating adjustment is uncertain. A rating may be raised, lowered or affirmed.
Negative Review When a probable cause for downgrade of a rating occurs. A rating may be lowered.

Insurer Financial Strength Rating

Rating Definitions

Rating Definitions
Rating Definitions
AAA An insurer rated 'AAA' has extremely strong capacity to meet policyholder and contract obligations.
AA An insurer rated 'AA' has very strong capacity to meet policyholder and contract obligations.
The impact of any adverse business and economic factors is expected to be very small.
A An insurer rated 'A' has strong capacity to meet policyholder and contract obligations, but is somewhat likely to be affected by adverse business conditions.
BBB An insurer rated 'BBB' has good capacity to meet policyholder and contract obligations, but is more likely to be affected by adverse business conditions than are higher rated insurers.
BB An insurer's rated 'BB' has marginal capacity to meet policyholder and contract obligations.
Though positive factors exist, there are speculative elements with respect to the stability of its capacity to meet financial obligations in the future.
B An insurer rated 'B' has weak capacity to meet policyholder and contract obligations.
Adverse business conditions will likely impair its ability to meet financial obligations.
CCC An insurer rated 'CC' has very weak capacity meet policyholder and contract obligations.
There may be present elements of danger with respect to timely payment of financial obligations.
CC An insurer rated 'CC' has extremely weak capacity to meet policyholder and contract obligations, and is likely not to meet some of its financial obligations.
C An insurer rated 'C' is highly likely not to meet its policyholder and contract obligations.
D An insurer rated 'D' has failed to make payments on their obligations in a timely manner.

* The ratings from 'AA' to 'B' may be modified by the addition of a plus(+) or minus(-) sign to show relative standing within the major rating categories.

Rating Outlook

Rating Outlook
Rating Outlook Definitions
Stable A rating is not likely to change within 1~2 years of time period
Positive A rating is likely to upgrade within 1~2 years of time period
Negative A rating is likely to downgrade within 1~2 years of time period
Evolving A rating is likely to upgrade, downgrade or stay within 1~2 years of time period.
A rating change is uncertain
None A rating is 'C' or 'D' , or under the Rating Watch
  1. Rating Outlook is assigned only to issuers or long-term debts (Structured finance excl).
  2. Rating Outlook is not necessarily a precursor of a rating change or future credit watch action. In other words, the rating may change in different with the rating outlook.

Rating Watch

Rating Watch
Rating Watch Sign Definitions
Positive Review When a probable cause for upgrade of a rating occurs. A rating may be upgraded.
Evolving When possible direction of a rating adjustment is uncertain. A rating may be raised, lowered or affirmed.
Negative Review When a probable cause for downgrade of a rating occurs. A rating may be lowered.