The obligations having an original maturity exceeding one year are considered long term. IIRA uses a scale of AAA to CCC to rate credit worthiness of Sovereign’s long term obligations, with AAA being the highest possible rating and C- being the lowest possible rating.

• AAA: Obligations rated AAA are considered the best quality. They present the least investment risk. While changes can be anticipated in business and economic conditions such changes as can be assessed are not likely to impact the fundamentally strong position of such obligors.
   
• AA: Obligations rated AA are considered high quality in all respects. Combined with the AAA obligations they constitute the high grade group. The differentiation is in the magnitude and range of fluctuations in elements that assure safety. Such elements in this category will not be as stable or predictable as for AAA category.
   
• A: Obligations rated as A are considered upper medium grade obligations possessing sound credit characteristics and reflect safe margins of protection at this time but may be susceptible to changes in future due to industry or product characteristics.
   
• BBB: Obligations rated BBB normally posses sound credit characteristics. The safety elements are adequate at present but hostile business factors may bring about a change in the credit characteristics.
   
• BB: Obligations rated BB reflect significant speculative characteristics and volatility in protection factors. The obligation is not well assured even in positive economic environment.
   
• B: Obligations rated B do not typically reflect characteristics of desirable investment. There is significant doubt that obligation can be met over any period of time.
   
• CCC: Obligations rated CCC are high risk and unpredictable with very poor protective elements.
   
• CC: Obligations rated CC are highly speculative. Such obligations are often in default or reflect limitations on repayment capacity.
   

• C: Obligations rated C have extremely high level of risk and they are unlikely to meet their commitments.
   

• D: ‘D’ rated Obligors are in default with respect to their obligations.

Note: IIRA appends modifiers + or - to each generic rating classification from AA through CCC. The modifier + indicates that the obligation ranks in the higher end of its generic rating category; no modifier indicates a mid-range ranking; and the modifier - indicates a ranking in the lower end of that generic rating category.

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 the Sovereign’s short term obligations, with A1+ being the highest possible rating and C being the lowest possible rating.

• A1+: Obligations rated A1+ have a superior ability for repayment of obligations and is evidenced by extremely strong liquidity conditions.
   
• A1: Obligations rated A1 have a strong ability for repayment and reflect very good liquidity conditions.
   
• A2: Obligations rated A2 have a sound capacity of repayment but could be effected by external market conditions.
   
• A3: Obligations rated A3 have an acceptable ability to repay the obligations. However, they are more susceptible to adverse market conditions and require careful management.
   
• B: The obligations rated B have weak capacity for repayment and economic changes can harm the liquidity conditions.
   
• C: Obligations rated C shows considerable uncertainty towards timely payments of obligations. The liquidity conditions appear very weak.

The long term obligations rated BBB and above are considered investment grade while obligations rated BB+ and below are of speculative grade.

The short term obligations rated A3 & above are investment grade while short term obligations rated B and C are sub investment grade.

Symbols

Plus/minus (+/-) signs: A plus (+) or minus (-) sign may be added to the ratings to show the relative standing of the obligor/Sovereign within a category. These signs are only added to the ratings from 'AA' to 'B'.

Outlook: The outlook on a rated entity highlights the potential direction of the assigned rating over the near term. The outlook can be ‘Positive’, ‘Stable’, ‘Negative’, or at times ‘Developing’.

Rating Watch: When new circumstances warrant a reconsideration of the assigned ratings, IIRA puts the rated obligors/Sovereign under 'Rating Watch'. Such circumstances may include regulatory actions, mergers, recapitalizations, voter referendums, a banking crisis, or the outbreak of war. However, a change in rating does not become inevitable due to the placement of the entity/Sovereign under Rating Watch. Likewise, due to the possibility of events other than those mentioned above, the ratings of an entity/Sovereign may change even without its appearance on Rating Watch.

Suspension: The rating of an obligor/Sovereign is suspended when the current status of the rating cannot be appraised. The problem may arise due to any number of reasons, most commonly the substandard quality of the information provided to IIRA or a lack of cooperation by the rated entity.

Withdrawal: IIRA declares withdrawal of a rating in case of:

a) Non-renewal / cancellation of the rating agreement with IIRA
b) Maturity of a rated Sovereign
c) Cessation of an entity