AAA / Aaa Rating
Corporate Credit Analysis glossary · Corporate Credit Analysis
Definition
The highest credit rating awarded by S&P/Fitch (AAA) or Moody's (Aaa), denoting extremely strong capacity to meet financial commitments. Reserved for issuers with minimal credit risk; historically dominated by sovereigns, supranationals, and a handful of corporates.
AAA / Aaa Rating in plain English
Imagine credit ratings as a report card for how likely a borrower is to pay you back, and "AAA" (or "Aaa" from Moody's) is a perfect A+ — the very top grade. It means the borrower is about as close to a sure thing as exists: the odds of them failing to pay are tiny. This grade is so hard to earn that it mostly goes to whole national governments and giant international institutions, with only a rare handful of individual companies ever making the cut.
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