A rating given by a credit rating agency (www.practicallaw.com/8-203-8993) to a company or other entity and which may be assigned to:
Its general creditworthiness.
A specific debt obligation (such as a loan or bond (www.practicallaw.com/0-107-6503)).
The rating reflects the company's ability to meet its financial commitments in full and on time.
Ratings are expressed as letter grades and range from 'AAA' (extremely strong capacity to meet its financial commitments) to 'D' (payment default on financial commitments) or equivalent depending on the particular rating agency.