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What is a credit rating and what makes a tenant classified as investment grade?

April 26, 2017Classified Credit rating grade Investment tenant

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What is a credit rating and what makes a tenant classified as investment grade?

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Ratings are basically tools for differentiating credit quality. Standard & Poor’s defines a rating as an opinion on the general creditworthiness of an obligor, or with respect to a particular debt security or other financial obligation. Under S&P’s ratings system, companies in the AAA, AA, A and BBB categories are regarded as “investment grade”, or blue chip entities. Ratings in the BB, B, CCC, CC and C categories are those with significant speculative characteristics.