What Is Aa2?
Aa2 is the third-highest long-term credit standing that scores company Moody’s assigns to fixed-income securities, like bonds, which are of top quality with very below-average credit possibility.
Key Takeaways
- Aa2 is the third-highest long-term credit standing that Moody’s assigns to fine quality fixed-income securities with very below-average credit possibility.
- The letters, “Aa” on this case, constitute the generic score classification, whilst the quantity, “2” on this case, refers back to the status inside of this classification.
- Within the Moody’s scale, Aa2 is slightly under Aaa and Aa1, however is above the whole lot else.
Figuring out Aa2
The letters “Aa” is the generic score classification and the quantity, on this case “2,” refers back to the status inside of this magnificence. Consistent with Moody’s, “Aa” means that the constant revenue legal responsibility is “judged to be of top quality and are matter to very below-average credit possibility.” The quantity “2” puts the duty in the midst of the variability of that score magnificence.
The credit score scores assigned by means of the quite a lot of scores companies, like Same old & Deficient’s, Moody’s, and Fitch Rankings, measure the likelihood that the borrower would possibly default. They’re primarily based essentially upon the insurer’s or issuer’s creditworthiness. Necessarily, the upper the score, the much more likely the issuer is to satisfy their monetary commitments and the decrease the chance of default.
Moody’s scores, as an example, get started “Aaa” for top bond issuers with the bottom possibility and pass right down to “C,” which is in most cases given to securities which are in default with little probability of the fundamental or hobby being repaid. Aa2 is slightly under Aaa and Aa1, however is above the whole lot else.
