Frequently Asked Questions

Credit rating classification

Classification done by PrivateLending

AAA - Extremely good credit quality
Highest level a borrower may get

Cumulative annual probability of default (%)
1 year: 0,00
2 years: 0,03

AA - Very good credit quality
Borrower has a strong capacity to meet its debt obligations

Cumulative annual probability of default (%)
1 year: 0,00-0,03

2 years: 0,05-0,10

A - Good credit quality
Borrower still has a strong capacity to meet its debt obligations and is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than in higher-rated categories

Cumulative annual probability of default (%)
1 year: 0,05-0,07
2 years: 0,10-0,20

BBB - Fair credit quality
Borrower has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to weaken its capacity to meet its financial commitments

Cumulative annual probability of default (%)
1 year: 0,11-0,25
2 years: 0,31-0,80

BB - Speculative credit quality
Borrower 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 that could lead to the its inadequate capacity to meet its financial commitments

Cumulative annual probability of default (%)
1 year: 0,35-1,00
2 years: 1,11-3,15

B - Highly speculative credit quality
Borrower 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 its capacity or willingness to meet its financial commitments

Cumulative annual probability of default (%)
1 year: 2,08-7,15
2 years: 5,71-14,30

CCC/C - Extremely speculative credit quality

Cumulative annual probability of default (%)
1 year: 26,82
2 years: 36,03