Rating Symbols & Definition
Long / Medium-term debt securities (both listed and unlisted) (bonds, notes etc) – the securities with original maturity exceeding one year
| Rating | Definition |
|---|---|
| CARE (za) AAA | Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) AA | Instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) A | Instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) BBB | Instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) BB | Instruments with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) B | Instruments with this rating are considered to have a high risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) C | Instruments with this rating are considered to have a very high risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) D | Instruments with this rating are in default or are expected to be in default soon in South Africa. |
Modifiers {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories CARE (za) AA to CARE (za) C. The modifiers reflect the comparative standing within the category.
B. Short Term Debt Instruments - Rating Symbols and Definitions
| Rating | Definition |
|---|---|
| CARE (za) A1 | Instruments with this rating are considered to have a very strong degree of safety regarding timely payment of financial obligations in South Africa. |
| CARE (za) A2 | Instruments with this rating are considered to have a strong degree of safety regarding timely payment of financial obligations in South Africa. |
| CARE (za) A3 | Instruments with this rating are considered to have a moderate degree of safety regarding timely payment of financial obligations in South Africa. They carry higher credit risk compared to instruments rated in the two higher categories. |
| CARE (za) A4 | Instruments with this rating are considered to have a minimal degree of safety regarding timely payment of financial obligations in South Africa. They carry very high credit risk and are susceptible to default. |
| CARE (za) D | Instruments with this rating are in default or expected to be in default on maturity in South Africa. |
Modifiers {"+" (plus)} can be used with the rating symbols for the categories CARE (za) A1 to CARE (za) A4. The modifiers reflect the comparative standing within the category.
Rating Outlook
- Positive: Indicates an expected upgrade in the credit ratings in the medium term on account of the expected positive impact on the credit risk profile of the entity.
- Stable: Indicates expected stability (or retention) of the credit ratings in the medium term on account of the stable credit risk profile of the entity.
- Negative: Indicates an expected downgrade in the credit ratings in the medium term on account of the expected negative impact on the credit risk profile of the entity.
A. Long-Term Scale - Rating Symbols and Definition
| Rating | Definition |
|---|---|
| CareEdge AAA | Denotes highest degree of safety regarding servicing of debt obligations with lowest credit risk. |
| CareEdge AA | Denotes a high degree of safety regarding servicing of debt obligations carrying very low credit risk. |
| CareEdge A | Denotes adequate degree of safety regarding servicing of debt obligations with low credit risk. |
| CareEdge BBB | Denotes a moderate degree of safety regarding servicing of debt obligations with moderate credit risk. |
| CareEdge BB | Denotes inadequate degree of safety regarding servicing of debt obligations with high credit risk. |
| CareEdge B | Denotes high vulnerability to default regarding servicing of debt obligations with very high credit risk. |
| CareEdge CCC | Denotes very high vulnerability to default regarding servicing of debt obligations with substantial credit risk. |
| CareEdge CC | Denotes imminent likelihood of default. |
| CareEdge C | Denotes imminent likelihood of default and/or restructuring with potential loss of principal. |
| CareEdge SD | Denotes default on one or more instruments while obligations on other instruments are being honoured. |
| CareEdge D | Denotes default on debt obligations. |
Modifiers {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories CareEdge
AA to CareEdge CCC. The modifiers reflect the comparative standing within the category.
Rating Outlook
- Positive: Indicates an expected upgrade in the credit ratings in the medium term on account of the expected positive impact on the credit risk profile of the entity.
- Stable: Indicates expected stability (or retention) of the credit ratings in the medium term on account of the stable credit risk profile of the entity.
- Negative: Indicates an expected downgrade in the credit ratings in the medium term on account of the expected negative impact on the credit risk profile of the entity.
A. Issuer Rating - Rating Symbols and Definition
| Symbols | Definition |
|---|---|
| CARE (za) AAA (Is) | Issuers with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) AA (Is) | Issuers with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) A (Is) | Issuers with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) BBB (Is) | Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) BB (Is) | Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) B (Is) | Issuers with this rating are considered to have a high risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) C (Is) | Issuers with this rating are considered to have a very high risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) D (Is) | Issuers with this rating are in default or are expected to be in default soon in South Africa. |
CARE SA’s Issuer Rating (IR) reflects the overall credit risk of the issuer. The rating scale has been aligned with the long-term instrument rating scale ranging from AAA (Highest Safety) to D (Default). 'Is' suffix indicates 'Issuer Rating'
Modifiers {"+" (plus) / "-" (minus)} can be used with the rating symbols for the categories CARE (za) AA to CARE (za) C. The modifiers reflect the comparative standing within the category.
Rating Outlook
- Positive: Indicates an expected upgrade in the credit ratings in the medium term on account of the expected positive impact on the credit risk profile of the entity.
- Stable: Indicates expected stability (or retention) of the credit ratings in the medium term on account of the stable credit risk profile of the entity.
- Negative: Indicates an expected downgrade in the credit ratings in the medium term on account of the expected negative impact on the credit risk profile of the entity.
A. Long Term Debt Fund Schemes: The debt fund schemes that have an original maturity exceeding one year
| Symbols | Rating Definition |
|---|---|
| CARE (za) AAAf | Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) AAf | Schemes with this rating are considered to have a high degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) Af | Schemes with this rating are considered to have an adequate degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) BBBf | Schemes with this rating are considered to have a moderate degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) BBf | Schemes with this rating are considered to have moderate risk of default regarding timely receipt of payments from the investments that they have made. |
| CARE (za) Bf | Schemes with this rating are considered to have high risk of default regarding timely receipt of payments from the investments that they have made. |
| CARE (za) Cf | Schemes with this rating are considered to have very high risk of default regarding timely receipt of payments from the investments that they have made. |
Modifiers {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories CARE (za) AAf to CARE (za) Cf. The modifiers reflect the comparative standing within the category.
B. Short Term Debt Fund Schemes: The debt fund schemes that have an original maturity of up to one year
| Symbols | Rating Definition |
|---|---|
| CARE (za) A1f | Schemes with this rating are considered to have a very strong degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) A2f | Schemes with this rating are considered to have a strong degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) A3f | Schemes with this rating are considered to have a moderate degree of safety regarding timely receipt of payments from the investments that they have made. |
| CARE (za) A4f | Schemes with this rating are considered to have a minimal degree of safety regarding timely receipt of payments from the investments that they have made. |
Modifier {"+" (plus)} can be used with the rating symbols for the categories CARE (za) A1f to CARE (za) A4f. The modifier reflects the comparative standing within the category.
CARE SA’s fund quality rating is not a recommendation to purchase, sell, or hold a security/ fund. It neither comments on the current market price or suitability for a particular investor nor on the prospective performance of the fund with respect to appreciation, volatility of net asset value (NAV), or yield of the fund. The ratings do not address the fund's ability to meet the payment obligations to the investors.
Rating Outlook
- Positive: Indicates an expected upgrade in the credit ratings in the medium term on account of the expected positive impact on the credit risk profile of the entity.
- Stable: Indicates expected stability (or retention) of the credit ratings in the medium term on account of the stable credit risk profile of the entity.
- Negative: Indicates an expected downgrade in the credit ratings in the medium term on account of the expected negative impact on the credit risk profile of the entity.
A. Rating Symbols and Definitions for Long Term Structured Finance instruments and Credit Enhanced Securities
Long / Medium-term debt securities with original maturity exceeding one year
| Rating | Definition |
|---|---|
| CARE (za) AAA (SO) | Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) AA (SO) | Instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) A (SO) | Instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) BBB (SO) | Instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations in South Africa. |
| CARE (za) BB (SO) | Instruments with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) B (SO) | Instruments with this rating are considered to have a high risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) C (SO) | Instruments with this rating are considered to have a very high risk of default regarding timely servicing of financial obligations in South Africa. |
| CARE (za) D (SO) | Instruments with this rating are in default or are expected to be in default soon in South Africa. |
Modifiers {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories CARE (za) AA to CARE (za) C. The modifiers reflect the comparative standing within the category.
B. Rating Symbols and Definitions for Short Term Structured Finance instruments and Credit Enhanced Securities
Short term Credit Enhanced Securities: The securities with original maturity of up to one year
| Symbols | Definition |
|---|---|
| CARE (za) A1 (SO) | Instruments with this rating are considered to have a very strong degree of safety regarding timely payment of financial obligations in South Africa. |
| CARE (za) A2 (SO) | Instruments with this rating are considered to have a strong degree of safety regarding timely payment of financial obligations in South Africa. |
| CARE (za) A3 (SO) | Instruments with this rating are considered to have a moderate degree of safety regarding timely payment of financial obligations in South Africa. They carry higher credit risk compared to instruments rated in the two higher categories. |
| CARE (za) A4 (SO) | Instruments with this rating are considered to have a minimal degree of safety regarding timely payment of financial obligations in South Africa. They carry very high credit risk and are susceptible to default. |
| CARE (za) D (SO) | Instruments with this rating are in default or expected to be in default on maturity in South Africa. |
Modifiers {"+" (plus)} can be used with the rating symbols for the categories CARE (za) A1 (SO) to CARE (za) A4 (SO). The modifiers reflect the comparative standing within the category.
For detailed write-up on Rating Symbols and Definitions click here
Rating Outlook
- Positive: Indicates an expected upgrade in the credit ratings in the medium term on account of the expected positive impact on the credit risk profile of the entity.
- Stable: Indicates expected stability (or retention) of the credit ratings in the medium term on account of the stable credit risk profile of the entity.
- Negative: Indicates an expected downgrade in the credit ratings in the medium term on account of the expected negative impact on the credit risk profile of the entity.
