Rating scales | Nordic Credit Rating

Nordic Credit Rating - Rating Scales and Definitions

Long-term rating scale

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
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.

Short-term rating scale

Rating	Description
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.