Rating of BBB. Credit ratings and research

It is necessary to somehow assess the state of affairs in the state. You can impartially judge the purchasing power or consider a particular case for an individual case and be interested in what gives importance. For example - the probability of debt repayment. And from this point of interest is provided by the credit rating and research on its establishment.

What is a credit rating and research?

Credit ratings are the opinions of selected foreign and Russian rating agencies on the financial stability and creditworthiness of the financial sector of individual countries within their borders and internationally. To determine what value should be assigned, special studies are carried out, whose purpose is to find out the economic situation in the country, to estimate the amount of debts paid and the probability of paying them if they are issued at the time of the study. Credibility is a parameter that estimates the probability of repaying debts if you give a loan right now. And it should be said that the ranking is practiced not only in relation to individual states, but also to large companies. Therefore, creditworthiness is a concept that applies not only to individual countries, but also to private companies.

Who exhibits it?

They are drawn up and exhibited by separate rating agencies that monitor the situation in the country. They can observe either through the media and state statistics, or by combining them with the reports of their representatives. For example, some offices interact with a number of users of different companies (through surveys), as the Better Business Bureau does, others try to limit themselves to only the largest organizations.

Why are they needed?

Why do you need these ratings? The fact is that they provide information to potential investors about the internal state and the state of affairs. Based on their opinions, many businessmen and companies decide whether to invest their money in a given state or organization.

Credit rating system

What credit rating systems do exist? They are quite a lot and they are denoted in Latin. In general, there is a rather large variety of scales of estimation, which use small letters, pluses and minuses, but within the framework of the article only the main "core" will be considered:

1. Rating AAA. The maximum level. It is understood that this country is a borrower with the highest level of creditworthiness. The financial situation is assessed as good and stable for a long time. The state fulfills its duties on time and is extremely dependent on external factors of anthropogenic origin. The possible risks are minimal, the probability of default is close to zero.
2. Rating AA. Very high level of creditworthiness. This category includes states that have a stable economic state for a long time. Such countries are also weakly dependent on negative changes in the global economy and have a low level of credit risks.
3. Rating A. High level of creditworthiness. The economic state of the states in this category is estimated as good at this point in time. All obligations are fulfilled in due time. At the same time, countries have low dependence on negative changes that occur in the global economy. The level of credit risk is assessed as low.
4. Rating of BBB. Relatively high level of creditworthiness. This rating shows that the country's economic situation is quite good. It can fulfill its obligations in full and on time. At the same time, the state is moderately dependent on negative changes in the world market. The probability of occurrence of credit risk is moderate.
5. Rating ВВ. Satisfactory level of creditworthiness. These letters in the rating indicate the states whose economic position can be assessed as acceptable. They fully and timely fulfill their obligations and moderately depend on negative changes in the global economic market, but with negative changes in the global economy, delays may occur. Credit risks are assessed as acceptable.
6. Rating V. Low level of creditworthiness. The economic situation of this category of states is characterized as unstable, and the opportunities for timely repayment of debts depend to a large extent on the international situation. Credit risks in such countries are above average.
7. CCC Rating. Low level of creditworthiness. This includes states with unsatisfactory economic situation. The ability to fulfill their obligations depends very much on changes in the macroeconomic environment. The level of credit risk is considered high. There is also a significant possibility that the obligations will not be fulfilled in full or in a timely manner.
8. SS rating. Very low level of creditworthiness. The financial condition of the countries that are listed in this category is unsatisfactory. The possibilities for fulfilling their obligations are determined in a significant way by changes in the external economic environment, and the credit risks are very large. The probability of default is very high.
9. Rating C. Unsatisfactory level of creditworthiness. The economies of countries in this category are in extremely poor condition and have extremely high risks. As a rule, countries with pre-default status enter here.
10. Rating D. Default. This includes countries that can not service their obligations and, most likely, the bankruptcy procedure will be launched there. It is necessary to distinguish between these two indicators, because a default is simply a refusal to pay their debts, in theory it can be declared by a state that can pay everything.

About Russia we will say a word

Since each agency has its own scoring scale, there is no identical opinion. But in general, the rating of Russia is BBB or BB. Not the best option, but not the most hopeless. Thus, the BBB rating indicates that there are certain problems. But even in the expert environment there is no unity. So, Russia's rating is now at such a level that it can be increased with the country's orientation toward the development of science and the introduction of new technologies. And then the BBB rating will be upgraded to A. If this is not done, then we will gradually fall.

Conclusion

As you can see, such seemingly simple letters can tell a lot. Behind them is the work of many people who collect and analyze the necessary information. And let's hope that the BBB rating assigned to Russia by many agencies at the moment will change to the best.