Standard & Poor's credit rating help...

[GuildfordPaul]

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

[mybrainhurts]

You've got Aids...

HTH...

[GuildfordPaul]

mybrainhurts said:

You've got Aids...

HTH...

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

[2something]

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]

I suspect most compaines have good credit ratings right up until they sudenly go bust.

[Tall_Paul]

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]

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]

thanks 2something & tall paul, very helpful.

[Not Ideal]

+ 1 - commonly known as "outlook"...eg BBB outlook positive

[NoelWatson]

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

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

[Hereward]

Surely the recent events have shown what a farce these rating agencies are.

[NoelWatson]

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]

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.