Bond ratings

Moody's Investor Services Description Standard & Poor's Description Fitch Ratings Description Grading
Aaa Obligations of the highest quality, subject to the lowest level of credit risk AAA The obligor's capacity to meet its financial commitment on the obligation is extremely strong AAA Exceptionally strong capacity for payment of financial commitments Investment grade securities / bonds - highly rated corporate bonds / debt securities usually have  Moody's rating Baa or higher, Standard&Poor's and Fitch Ratings rating BBB or higher
Aa Obligations of high quality, subject to very low credit risk AA The obligor's capacity to meet its financial commitment on the obligation is very strong AA Very strong capacity for payment of financial commitments
A Obligations of upper-medium grade, subject to low credit risk A The obligor's capacity to meet its financial commitment on the obligation is strong A The capacity for payment of financial commitments is strong, but may be more vulnerable to adverse business or economic conditions
Baa Obligations of medium-grade, subject to moderate credit risk, may possess certain speculative characteristics BBB Adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation BBB The capacity for payment of financial commitments is adequate but adverse business or economic conditions are more likely to impair this capacity
Ba Obligations are speculative, subject to substantial credit risk BB Major ongoing uncertainties or exposure to adverse business, financial, or economic conditions could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation BB An elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time  
B Obligations are speculative, subject to high credit risk B Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation B Financial commitments are currently being met, but capacity for continued payment is vulnerable to deterioration in the business and economic environment
Caa Obligations are speculative, of poor standing, subject to very high credit risk CCC In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation CCC Default is a real possibility Junk debt securities / bonds of lowest grade, it’s very probable that an issuer won’t be able to meet his obligations
Ca

Obligations are highly speculative and are likely in, or very near, default, with some

prospect of recovery of principal and interest
CC An obligation is currently highly vulnerable to nonpayment CC Default of some kind appears probable
C

Obligations are the lowest rated and are typically in default, with little prospect for

recovery of principal or interest
C Obligations are currently highly vulnerable to nonpayment, or obligations have payment arrearages, or an issuer is the subject of a bankruptcy petition or similar action C Default appears imminent or inevitable
    D An obligation is in payment default D Indicates a default
        NR Not rated

Default: non-performance of obligations, insolvency

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.