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| LONG – TERM RATINGS | |
| ECRL’s Long-Term Ratings are assigned to debt with maturities of more than one year. These debt ratings specifically assess the likelihood of timely repayment of principal and payment of interest over the term to maturity of such debts. | |
| RATING | DEFINITION |
| AAA | Indicates that the ability to repay principal and pay interest on a timely basis is extremely high. |
| AA | Indicates a very strong ability to repay principal and pay interest on a timely basis, with limited increment risk compared to issues rated in the highest category. |
| A | Indicates the ability to repay principal and pay interest is strong. These issues could be more vulnerable to adverse developments, both internal and external, than obligations with higher ratings. |
| BBB | This grade indicates an adequate capacity to repay principal and pay interest. More vulnerable to adverse developments, both internal and external, than obligations with higher ratings. |
| BB | This rating suggests that likelihood of default is considerably less than for lower-rated issues. However, there are significant uncertainties that could affect the ability to adequately service debt obligations. |
| B | Indicates a higher degree of uncertainty, and therefore, greater likelihood of default. Adverse developments could negatively affect repayment of principal and payment of interest on a timely basis. |
| C | High likelihood of default, with little capacity to address further adverse changes in financial circumstances. |
| D | Payment in default. |
Notes: Long-Term Ratings from AA to B may be modified by the addition of a plus (+) or minus (-) suffix to show relative standing within the major rating categories. Bank-guaranteed issues will carry a suffix (bg), corporate-guaranteed issues, a (cg), issues guaranteed by a financial guarantee insurer (FGI), an (fg), and all other supports, an (s) when such guarantees or supports give favorable effect to the assigned rating.
| SHORT – TERM RATINGS | |
| ECRL’s Short-Term (ST) Ratings are assigned to specific debt instruments with original maturities of one year or less, and are intended to assess the likelihood of timely repayment of principal and payment of interest. | |
| RATING | DEFINITION |
| ST – 1 | The highest category; indicates a very high likelihood that principal and interest will be paid on a timely basis. |
| ST – 2 | While the degree of safety regarding timely repayment of principal and payment of interest is strong, the relative degree of safety is not as high as issues rated ST-1. |
| ST – 3 | This grade indicates while the obligation is more susceptible to adverse developments, both internal and external, the capacity to service principal and interest on a timely basis is considered adequate. |
| ST – 4 | This rating suggest likelihood of default is considerably less than for lower rated issues but faces significant uncertainties that could impact its financial commitment on the obligation. |
| ST – 5 | High likelihood of default, with little capacity to address further adverse changes in financial circumstances. |
| ST – 6 | Payment in default. |
Notes: Short-Term (ST) Ratings will also carry a suffix (bg) for bank-guaranteed issues, (cg) for corporate-guaranteed issues, (fg) for FGI-guaranteed issues, and (s) for all other supports when such guarantees or supports give favorable effect to the assigned rating.
| RATING OUTLOOK | |
| ECRL’s Rating Outlook assesses the potential direction of the Corporate Debt Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be : | |
| POSITIVE | Which indicates that a rating may be raised; |
| NEGATIVE | Which indicates that a rating may be lowered; |
| STABLE | Which indicates that a rating is likely to remain unchanged; or |
| DEVELOPING | Which indicates that a rating may be raised, lowered or remain unchanged. |
** prefix and suffix is added depending on industry and rating type.
| RATING | DEFINITION |
| ESME1 | Indicates highest credit-quality with minimal credit risk |
| ESME2 | Indicates a very strong credit-quality with limited credit risk compared to issues rated in the highest category. |
| ESME3 | Indicates adequate credit-quality with low credit risk. |
| ESME4 | Indicates moderate credit-quality with average credit risk. |
| ESME5 | Indicates below average credit-quality with above average credit risk. |
| ESME6 | Indicates low credit-quality with a higher degree of credit risk. |
| ESME7 | Indicates very poor credit-quality with very high credit risk. |
| ESME8 | Indicates lowest credit-quality with highest credit risk. |
| RATING OUTLOOK | |
| ECRL’s Rating Outlook assesses the potential direction of the SME Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be : | |
| POSITIVE | Which indicates that a rating may be raised; |
| NEGATIVE | Which indicates that a rating may be lowered; |
| STABLE | Which indicates that a rating is likely to remain unchanged; or |
| DEVELOPING | Which indicates that a rating may be raised, lowered or remain unchanged. |