Egan-Jones uses a rating scale consistent with those used by other NRSROs. Ratings reflect our assessment of an obligor's capacity and willingness to meet its financial commitments.
Egan-Jones' issuer credit ratings are forward-looking opinions about an obligor's overall financial capacity (its creditworthiness) to pay its financial obligations. Ratings may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
An obligor rated 'AAA' has extremely strong capacity to meet its financial commitments. 'AAA' is the highest issuer credit rating assigned by Egan-Jones.
An obligor rated 'AA' has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree. Modifiers: AA+, AA, AA-.
An obligor rated 'A' has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions. Modifiers: A+, A, A-.
An obligor rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor's capacity. Modifiers: BBB+, BBB, BBB-.
An obligor rated 'BB' is less vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions. Modifiers: BB+, BB, BB-.
An obligor rated 'B' is more vulnerable than the obligors rated 'BB', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor's capacity. Modifiers: B+, B, B-.
An obligor rated 'CCC' is currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments. Modifiers: CCC+, CCC, CCC-.
An obligor rated 'CC' is currently highly vulnerable. The 'CC' rating is used when a default has not yet occurred, but Egan-Jones expects default to be a virtual certainty, regardless of the anticipated time to default.
An obligor rated 'C' is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared with obligations that are rated higher.
An obligor rated 'D' is in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due.
Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the U.S., for example, that means obligations with an original maturity of no more than 365 days, including commercial paper.
Extremely strong capacity to meet financial commitments. The highest short-term credit quality.
Strong capacity to meet financial commitments.
Satisfactory capacity to meet financial commitments, but somewhat susceptible to adverse conditions.
Adequate capacity to meet financial commitments, but more susceptible to adverse conditions.
Speculative capacity to meet financial commitments.
Doubtful capacity to meet financial commitments.
In default or in breach of an imputed promise.
A rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). In determining a rating outlook, consideration is given to any changes in the economic and/or fundamental business conditions.
A rating may be raised.
A rating may be lowered.
A rating is not likely to change.
A rating may be raised, lowered, or affirmed.
CreditWatch highlights the potential direction of a short- or long-term rating. It focuses on identifiable events and short-term trends that cause ratings to be placed under special surveillance. Ratings appear on CreditWatch when such an event or deviation from an expected trend has occurred.
Indicates that a rating may be raised. A positive CreditWatch listing does not mean a rating change is inevitable.
Indicates that a rating may be lowered. A negative CreditWatch listing does not mean a rating change is inevitable.
Indicates that a rating may be raised, lowered, or affirmed, depending on the outcome of the event or circumstance under review.
View Egan-Jones' public credit ratings and research through our online portal.