Agusto & Co. amends its Short-Term Rating Scale
Agusto & Co., the Pan-African credit rating agency, has implemented changes in the notation of its short-term rating scale. The S1+ to D rating scale has been changed to A1+ to D. The old short-term rating scale, the new short-term rating scale and mapping to the long-term rating scale are outlined in the table below.
| Long Term Rating | Old Short-Term Rating | New Short-Term Rating | Short Term Rating Definition |
|---|---|---|---|
| Aaa | S1+ | A1+ | A financial institution/company with the strongest capacity to meet short-term obligations as and when they fall due relative to other issuers/obligations in the same country |
| Aa+ | S1+ | A1+ | |
| Aa | S1+ | A1+ | |
| Aa- | S1+ | A1+ | |
| A+ | S1 | A1 | A financial institution/company with a strong capacity to meet short-term obligations as and when they fall due relative to other issuers/obligations in the same country |
| A | S1 | A1 | |
| A- | S2 | A1 | |
| Bbb+ | S2 | A2 | A financial institution/company with adequate capacity to meet short-term obligations as and when they fall due relative to other issuers/obligations in the same country |
| Bbb | S2 | A2 | |
| Bbb- | S3 | A3 | A financial institution/company with limited capacity to meet short-term obligations as and when they fall due relative to other issuers/obligations in the same country |
| Bb+ | B | B | A financial institution/company with weak capacity to meet short-term obligations as and when they fall due relative to other issuers/obligations in the same country |
| Bb | B | B | |
| Bb- | B | B | |
| B+ | B | B | |
| B | B | B | |
| B- | B | B | |
| C+ | C | C | A financial institution/company with very weak capacity to meet short-term obligations as and when they fall due relative to other issuers/obligations in the same country |
| C | C | C | |
| C- | C | C | |
| D | D | D | A financial institution/company in default |
Long Term Rating Definitions
| RATING | RATING DEFINITION |
|---|---|
| Aaa | Industry is operating in an extremely stable political environment with sound macro-economic policies. The industry is immune to adverse changes in the economic environment. |
| Aa | Industry is operating in a stable political environment with sound macro-economic policies. Adverse changes in the economic environment will have little impact on the performance of the Industry. |
| A | Industry is operating in a fairly stable political environment and adverse changes in the economic environment will only increase industry risk slightly. |
| Bbb | Although industry is operating in a moderate to high-risk environment, economic fundamentals are still strong. Adverse changes in economic conditions will increase industry risk moderately. |
| Bb | Industry is operating in a moderate to high-risk environment and economic fundamentals are weak. Adverse changes in economic conditions will increase industry risk severely. |
| B | Industry operates in a high-risk environment, economic fundamentals are weak, and industry risk is very high. |
| Ccc | Industry operates in a very high-risk environment, economic fundamentals are weak, and industry risk is very high. |
| Cc | Industry operates in an extremely risky environment, economic fundamentals are weak, and industry risk is extremely high.. |
| D | Total failure of industry. |
