IIRA’s Sovereign Rating Scale

Medium to Long Term

IIRA uses a scale of AAA to C to rate credit worthiness of the issuer and long term issues with AAA being the highest possible rating and C being the lowest possible rating.

AAA: Highest credit quality. Represent the least credit risk.

AA+, AA, AA-: High credit quality. Protection factors are strong. Risk is modest but may vary slightly from time to time.

A+, A, A-: Good credit quality. Protection factors are adequate. Risk levels may vary or on time to time.

BBB+, BBB, BBB- : Adequate credit quality. Protection factors are reasonable and sufficient. Risk factors are considered relatively less stable.

BB+, BB, BB- : Obligations deemed likely to be met. Protection factors are capable of weakening if changes occur in the economy. Overall quality may move up or down frequently within this category.

B+, B, B- : Obligations deemed less likely to be met. Protection factors are capable of fluctuating widely if changes occur in the economy. Overall quality may move up or down frequently within this category or into higher or lower rating grade.

CCC: Considerable uncertainty exists towards meeting the obligations. Protection factors are scarce and risk may be substantial.

CC: A high default risk.

C: A very high default risk.

D: Defaulted obligations.

Short Term

The obligations having an original maturity not exceeding one year are considered short term. IIRA uses a scale of A1+ to C to rate credit worthiness of short term obligations, with A1+ being the highest possible rating and C being the lowest possible rating.

A1+: Superior ability for repayment of obligations, evidenced by extremely strong liquidity conditions.

A1: Strong ability for repayment and reflecting very good liquidity conditions.

A2: Sound capacity of repayment but could be affected by external market conditions. Risk levels may vary from time to time.

A3: Adequate ability to repay the obligations. However, risk factors are more susceptible to adverse market conditions.

B: The obligations rated B have weak capacity for repayment and economic changes can harm liquidity conditions.

C: Obligations rated C shows considerable uncertainty towards timely payments of obligations. The liquidity conditions appear very weak.