Enterprise credit rating can directly reflect the overall image of an enterprise, and has a great impact on the company’s asset quality, profitability, repayment ability and other financial indicators. The relevant indicators serve as the financial basis for the enterprise’s credit rating, which in turn influences the enterprise’s credit rating. Significant changes come. At present, domestic project bidding, financing loans, government procurement, corporate publicity, etc. all require the issuance of credit rating certificates and credit reports. So how is the corporate credit rating assessed? Next, the editor of Zhiqi.com will take everyone to take a look.
How are corporate credit ratings classified?
AAA corporate certification is a type of corporate credit rating. Corporate credit rating is divided into many levels, and each level has different meanings. The credit rating of the enterprise is divided into three grades and ten grades. The degree of credit is expressed as follows from high to low: AAA, AA, A, BBB, BB, B, CCC, CC, C, D, and CCC, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C, C. Each level can be fine-tuned with the "+" and "-" symbols to indicate slightly higher or slightly lower than this level, but does not include AAA+.
AAA level: excellent credit
AAA-level enterprises are the most advanced enterprises with the strongest ability to service debt and interest. The enterprise has a high degree of credit, excellent credit records, strong financial strength, excellent asset quality, and obvious economic benefits. Uncertainties have minimal impact on its operation and development, and have strong contract performance capabilities.
AA level: good credit
AA-level enterprises are high-level enterprises with strong debt and interest repayment capabilities and basically risk-free. The creditworthiness of the enterprise is higher, and the debt risk is lower. Such enterprises have excellent credit records, good operating conditions, high profitability, and broad development prospects. Uncertainties have little impact on their operations and development.
Grade A: good credit
The creditworthiness of the enterprise is good, and there is no problem in repaying debts under normal circumstances. Such enterprises have good credit records and are operating in a virtuous circle, but there may be some uncertain factors that affect their future operations and development, thereby weakening their profitability and repayment ability.
BBB level: average credit
A BBB-level enterprise has a general debt repayment ability, and bad changes in internal and external uncertain factors tend to weaken its debt repayment ability, and its investment risk is general. It is the lowest credit rating that can be accepted under normal circumstances. The creditworthiness of the enterprise is average, and the ability to repay debts is average. The credit records of such enterprises are normal, but their operating conditions, profitability and future development are susceptible to uncertain factors, and their solvency fluctuates.
BB grade: poor credit
The creditworthiness of the enterprise is poor and the repayment ability is insufficient. Such companies have a lot of bad credit records, and their future prospects are uncertain and contain speculative factors. BB, B, CCC and CC-level companies are speculative-level companies. BB-level companies are the least speculative, and CC-level companies are the most speculative. Under the circumstance of constantly changing internal and external uncertain factors in the debt service ability of speculative enterprises, there is great uncertainty and the risk of default is great.
Grade B: Poor credit
The creditworthiness of the enterprise is poor, and the debt repayment ability is weak.
CCC level: poor credit
The credit of the enterprise is very poor and it has almost no solvency.
CC level: extremely poor credit
The credit of the enterprise is extremely poor, and it has no solvency.
C, D level: no credit
C-level companies are on the verge of default, and their ability to repay debt and interest is extremely weak.
Class D enterprises are defaulting enterprises.