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.
| Nordic Credit Rating - Rating Scales and Definitions |  |
| 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. |
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