Terms

Single A Credit Rating

Nick Name
Single A
Abbreviation
A
Parent term
A credit rating is given to a particular entity based on the credentials and the extent to which the financial statements of the entity are sound, in terms of borrowing and lending. Based on the opinion of a credit agency regarding the ability and willingness of an entity to fulfill its financial obligations, it also represents the debt instrument, whether a loan or a bond issuance. An obligation rated ‘A’ is more susceptible to the adverse effects of changes in circumstances and economic conditions than obligation in higher-rated categories. In the case of bond issuance, the credit rating indicates the worthiness of the corporation or sovereign country’s ability to repay the bond payments in due time.