Credit Ratings

Credit ratings (formal or implied) are utilized in order to gauge the financial strength and participation of Security Fund members. Moody’s, S&P, and Fitch ratings are used for public members with formal ratings while Moody’s CreditEdge implied ratings are used for public companies without formal ratings.

Private companies with no formal ratings are assigned implied ratings calculated by Moody’s RiskCalc 4.0.

The hierarchy in which the Security Fund takes formal ratings under consideration for assessment / participation purposes is outlined below:

I. Senior Unsecured same same
II. LT Issuer Credit same LT Issuer Default
III. LT Corporate Family /
Other Unsecured
Other Unsecured same