Nordic Credit Rating AS (NCR) is registered with the European Securities Markets Authority (ESMA) and authorized to perform credit rating activities in the European Union and the EFTA countries. NCR assigns credit ratings to financial institutions and corporate entities based primarily in Denmark, Finland, Iceland, Norway, and Sweden.
NCR is independent of any government, financial or corporate entity and our sole focus is to assess credit quality and assign credit ratings.
Nordic Credit Rating - Rating Scales and Definitions |
NCR assigns long-term credit ratings on a scale comprising several categories ranging from 'AAA', reflecting the strongest credit quality, to 'D', reflecting the lowest. Rating categories from 'AA' to 'B' are modified by plus (+) and minus (-) where required to show their relative position within the rating category.
Rating | Description |
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AAA | 'AAA' rated entities and instruments demonstrate exceptional credit quality and lowest expectation of default risk. |
AA | 'AA' rated entities and instruments demonstrate very high credit quality with a very low default risk. |
A | 'A' rated entities and instruments demonstrate high credit quality with a low default risk. |
BBB | 'BBB' rated entities and instruments demonstrate medium credit quality with a moderate default risk. |
BB | 'BB' rated entities and instruments demonstrate speculative credit quality with a slightly increased default risk. |
B | 'B' rated entities and instruments demonstrate highly speculative credit quality with an increased default risk. |
CCC | 'CCC' entities and instruments demonstrate very low credit quality with a high default risk. |
CC | 'CC' rated entities and instruments demonstrate very low credit quality and an event of default is very likely. |
C | 'C' rated entities and instruments demonstrate the lowest credit quality and an event of default is imminent. |
D/SD | 'D' rated entities and instruments have defaulted, as defined by NCR. 'SD' (selective default) rated entities have only defaulted on certain debt obligations. |
Plus (+) and minus (-) | Rating categories from 'AA' to 'B' are modified by a plus (+) or a minus (-), where required, to show their relative position within the rating category. |
Rating | Description |
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N1 | The issuer has exceptional capacity for the timely payment of short-term debt obligations. |
N2 | The issuer has high capacity for the timely payment of short-term debt obligations. |
N3 | The issuer has satisfactory capacity for the timely payment of short-term debt obligations. |
N4 | The issuer has moderate capacity for the timely payment of short-term debt obligations. |
N5 | The issuer has weak capacity for the timely payment of short-term debt obligations. |
N6 | The issuer has weak capacity for the timely payment of short-term debt obligations and has an increased risk compared with higher-rated instruments. |
D/SD | 'D' rated entities and instruments have defaulted, as defined by NCR. 'SD' (selective default) rated entities have only defaulted on certain debt obligations. |
Methodology | Effective date | Download |
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Corporate Rating Methodology | 2023-05-08 | |
Covered Bond Rating Methodology | 2024-02-14 | |
Financial Institutions Rating Methodology | 2024-02-14 | |
Group and Government Support Rating Methodology | 2024-02-14 | |
Investment Holding Company Rating Methodology | 2022-10-24 | |
Local and Regional Government Rating Methodology | 2024-02-14 | |
Rating Principles | 2024-02-14 | |
Sovereign Credit Assessment Methodology | 2024-03-26 | |
Models | Publish date | Download |
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Corporate Forecast Model | 2022-06-08 | |
Covered Bond Cash Flow model | 2022-06-08 | |
Financial Institutions Forecast Model | 2022-06-08 | |
Real Estate Management Forecast Model | 2022-06-08 | |
Related research | Publish date | Download |
---|---|---|
Nordic Credit Rating's view on corporate hybrid securities | 2019-10-03 | |
Nordic Credit Rating's view on corporate preferred shares | 2020-08-25 | |
Nordic Credit Rating's view on distressed exchanges | 2024-08-29 | |
Nordic Credit Rating's view on sustainability-linked hybrid bonds | 2022-02-03 | |
Code of Conduct Policy | |
Policy on Conflicts of interest | |
Policy on Issuance and review of credit ratings | |
Policy on Pricing | |
Policy on Staffing and compensation |
Definitions of Terms |