RATINGS DEFINITIONS
VAST RATINGS’ GLOBAL EXPECTED LOSS
Purpose and Scope
VAST Ratings has an Expected Loss Rating Scale that provides our analytical opinion of the given risk of the commitment. The Expected Loss Rating Scale applies to all our ratings globally. It should be read in conjunction with all other applicable policies and procedures.
Scale
The rating scale below additionally has “+” and “-“, except for the AAA, C, and D ratings. The added “+” means that the rating is slightly better to the given rating and the “-“ means that the rating is slightly worse than the given rating, in regards to credit quality and expected loss.
| Rating | Definintion |
|---|---|
| AAA | The commitment is of highest credit quality. |
| AA | The commitment is of high credit quality. |
| A | The commitment is upper-medium credit quality |
| BBB | The commitment is medium credit quality. |
| BB | The commitment is considered to have some speculative credit quality. |
| B | The commitment is speculative credit quality. |
| C | The commitment is in default with potential of low-to-average principal losses. |
| D | The commitment is in default with the potential of high principal losses. |