Standard & Poor's credit rating help...
Standard & Poor's credit rating help...
Author
Discussion

GuildfordPaul

Original Poster:

467 posts

236 months

Wednesday 15th October 2008
quotequote all
Hi,

I have a credit rating for a NASDAQ listed US based company which is BB/Positive/--

I've found what the BB bit means from their website as detailed below, but can anyone let me know what the Positive/-- part means?

BB definition:

BB, B, CCC, CC, and C
Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

BB
An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.


Thanks guys
thumbup

mybrainhurts

90,809 posts

285 months

Wednesday 15th October 2008
quotequote all
You've got Aids...

HTH...

GuildfordPaul

Original Poster:

467 posts

236 months

Wednesday 15th October 2008
quotequote all
mybrainhurts said:
You've got Aids...

HTH...
are you sure? I thought -- would outway positive...

2something

2,145 posts

238 months

Wednesday 15th October 2008
quotequote all
I think the positive refers to the outlook for their credit.

Hopefully someone can come along and explain the nuances behind what this really means.

Simpo Two

92,883 posts

295 months

Wednesday 15th October 2008
quotequote all
I suspect most compaines have good credit ratings right up until they sudenly go bust.

Tall_Paul

1,915 posts

257 months

Wednesday 15th October 2008
quotequote all
Wikipedia said:
For some borrowers, S&P may also offer guidance (termed a "credit watch") as to whether it (the rating) is likely to be upgraded (positive), downgraded (negative) or uncertain (neutral).
HTH

FarleyRusk

1,036 posts

241 months

Wednesday 15th October 2008
quotequote all
Simpo Two said:
I suspect most compaines have good credit ratings right up until they sudenly go bust.
Indeed all the Icelandics' long-term debt was 'A'-rated or higher until _after_ they went bust.

http://www.kaupthing.com/Investors/Ratings

GuildfordPaul

Original Poster:

467 posts

236 months

Thursday 16th October 2008
quotequote all
thanks 2something & tall paul, very helpful.

Not Ideal

3,057 posts

218 months

Thursday 16th October 2008
quotequote all
+ 1 - commonly known as "outlook"...eg BBB outlook positive

NoelWatson

11,710 posts

272 months

Thursday 16th October 2008
quotequote all
GuildfordPaul said:
Hi,

I have a credit rating for a NASDAQ listed US based company which is BB/Positive/--

I've found what the BB bit means from their website as detailed below, but can anyone let me know what the Positive/-- part means?

BB definition:

BB, B, CCC, CC, and C
Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

BB
An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.


Thanks guys
thumbup
What is the name of the company - I will do some digging

Hereward

5,121 posts

260 months

Thursday 16th October 2008
quotequote all
Surely the recent events have shown what a farce these rating agencies are.

NoelWatson

11,710 posts

272 months

Thursday 16th October 2008
quotequote all
Hereward said:
Surely the recent events have shown what a farce these rating agencies are.
That is why I asked name of company - will see if they are quoted on credit markets

GuildfordPaul

Original Poster:

467 posts

236 months

Thursday 16th October 2008
quotequote all
NoelWatson said:
Hereward said:
Surely the recent events have shown what a farce these rating agencies are.
That is why I asked name of company - will see if they are quoted on credit markets
Thanks Noel, much appreciated, PM sent as I don't want to discuss the company or my links to them on a public forum.

Many thanks for your help.