I. Sovereign debt rating:
1, the highest credit rating: AAA (extremely low risk).
2. High credit rating: AA+, AA, AA- (highly reliable).
3. Medium credit rating: A+, A, A- (medium risk).
4. Low credit rating: BBB+, BBB, BBB- (relatively low risk).
5. Low credit rating: BB+, BB, BB- (high risk).
6. High risk level: B+, B, B- (high risk).
7. Extremely high risk level: CCC+, CCC, CCC- (extremely high risk).
8. Default risk level: CC, C (high default risk).
9. No credit rating: D (default).
Two. Non-sovereign debt rating (including corporate debt and financial institution debt, etc.). ):
1. Investment level: AAA, AA, A, BBB (relatively low risk).
2. High-yield levels: BB, B, CCC, CC (higher risk).
3. Default risk level: C and D (high default risk).
The application of international credit rating in the world
1. Investment decision: International credit rating provides investors with a reference index for evaluating the risks of debt instruments (such as national debt and corporate bonds). Investors can judge the credit quality and expected default risk of debt instruments according to the rating level, so as to make corresponding investment decisions.
2. Loans and financing: International credit rating is equally important to borrowers and financiers. The higher the rating, the borrower can borrow money at lower interest rate and more favorable terms, because its credit risk is lower. Financing parties can use ratings to prove their credit status and improve the chances of obtaining loans or issuing bonds.
3. International trade: International credit rating is particularly important for international trade. Buyers and sellers can use ratings to evaluate the credit status of potential partners, reduce transaction risks, and may obtain more favorable trading conditions.