Long-Term Issuances
PRS Aaa: Obligations rated ‘PRS Aaa’ are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is EXTREMELY STRONG. ‘PRS Aaa’ is the highest rating assigned by PhilRatings.
PRS Aa: Obligations rated ‘PRS Aa’ are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is VERY STRONG.
PRS A: With favorable investment attributes and are considered as upper-medium grade obligations. Although obligations rated ‘PRS A’ are somewhat more susceptible to the adverse effects of changes in economic conditions, the obligor’s capacity to meet its financial commitments on the obligation is still STRONG.
PRS Baa: An obligation rated ‘PRS Baa’ exhibits ADEQUATE protection parameters. Adverse economic conditions and changing circumstances, however, are more likely to lead to a weakened capacity on the part of the obligor to meet its financial commitment on the obligation. ‘PRS Baa’-rated issues may possess certain speculative characteristics.
PRS Ba: An obligation rated ‘PRS Ba’ is LESS VULNERABLE to nonpayment than other speculative issues. However, it faces major ongoing uncertainties relating to business, financial or economic conditions, which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation.
PRS B: An obligation rated ‘PRS B’ is MORE VULNERABLE to nonpayment than obligations rated ‘PRS Ba’, but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse economic conditions will likely impair the obligor’s capacity to meet its financial commitment on the obligation. The issue is characterized by high credit risk.
PRS Caa: An obligation rated ‘PRS Caa’ is PRESENTLY VULNERABLE to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitments on the obligation. In the event of adverse economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. The issue is considered to be of poor standing and is subject to very high credit risk.
PRS Ca: An obligation rated ‘PRS Ca’ is PRESENTLY HIGHLY VULNERABLE to nonpayment. Likely already in and very near default with some prospect for partial recovery of principal or interest.
PRS C: An obligation is already in DEFAULT with very little prospect for any recovery of principal or interest. ‘PRS C’ is the lowest rating assigned by PhilRatings.
Note: PhilRatings can also include a plus (+) or a minus (-) sign to further qualify the above ratings.
Issuer Credit Ratings
PRS Aaa (corp.): A company rated ‘PRS Aaa’ has a VERY STRONG capacity to meet its financial commitments relative to that of other Philippine corporates. ‘PRS Aaa’ is the highest Corporate Credit Rating assigned on the PRS scale.
PRS Aa (corp.): A company rated ‘PRS Aa’ differs from the highest rated corporates only to a small degree, and has a STRONG capacity to meet its financial commitments relative to that of other Philippine corporates.
PRS A (corp.): A company rated ‘PRS A’ has an ABOVE AVERAGE capacity to meet its financial commitments relative to that of other Philippine corporates. The company, however, is somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates.
PRS Baa (corp.): A company rated ‘PRS Baa’ has an AVERAGE capacity to meet its financial commitments relative to that of other Philippine corporates. Adverse economic conditions or changing circumstances, however, are more likely to lead to a weakened capacity of the corporation to meet its financial commitments.
PRS Ba (corp.): A company rated ‘PRS Ba’ has a BELOW AVERAGE capacity to meet its financial commitments relative to that of other Philippine corporates. The company faces ongoing uncertainties or exposure to adverse business, financial, or economic conditions, which could result in an inadequate capacity on the part of the corporation to meet its financial commitments.
PRS B (corp.): A company rated ‘PRS B’ has a WEAK capacity to meet its financial commitments relative to that of other Philippine corporates. Adverse business, financial or economic conditions will likely impair the corporation’s capacity or willingness to meet its financial commitments.
PRS Caa (corp.): A company rated ‘PRS Caa’ is CURRENTLY VULNERABLE and is dependent upon favorable business and financial conditions to meet its financial commitments.
PRS Ca (corp.): A company rated ‘PRS Ca’ is CURRENTLY HIGHLY VULNERABLE to defaulting on its financial commitments.
PRS C (corp.): A company rated ‘PRS C’ is in DEFAULT on its financial commitments.
Note: PhilRatings can also include a plus (+) or a minus (-) sign to further qualify the above ratings.
Financial Strength Credit Ratings
PRS Aaa: The insurance company has EXTREMELY STRONG financial security characteristics. This is the highest financial strength rating on PhilRatings’ rating scale.
PRS Aa: The insurance company has VERY STRONG financial security characteristics, differing only slightly from those rated ‘PRS Aaa’.
PRS A: The insurance company has STRONG financial security characteristics but is somewhat more likely to be affected by adverse business conditions compared to higher-rated insurance companies.
PRS Baa: The insurance company has GOOD financial security characteristics but is more likely to be affected by adverse business conditions compared to higher-rated insurance companies. An insurance company rated ‘PRS Baa’ or lower is in the vulnerable range and is regarded as having vulnerable characteristics that may outweigh its strengths.
PRS Ba: The insurance company has MARGINAL financial security characteristics. Positive attributes exist but adverse business conditions can lead to insufficient ability to meet financial commitments.
PRS B: The insurance company has WEAK financial security characteristics. Adverse business conditions will most likely impair its ability to meet financial commitments.
PRS Caa: The insurance company has VERY WEAK financial security characteristics.
PRS Ca: The insurance company has EXTREMELY WEAK financial security characteristics and is not likely to meet some of its financial commitments.
PRS C: The insurance company is in DEFAULT on its financial commitments.
Note: PhilRatings can also include a plus (+) or a minus (-) sign to further qualify the above ratings.
Credit Rating Outlook
An Outlook is an indication as to the possible direction of any rating change within a one-year period and serves as a further refinement of any credit rating assigned for the guidance of investors, regulators, and the general public.
Possible Outlooks that can be assigned are the following:
POSITIVE: There is a potential for the present credit rating to be upgraded in the next 12 months.
NEGATIVE: There is a potential for the present credit rating to be downgraded in the next 12 months.
STABLE: There is a potential for the present credit rating to remain unchanged in the next 12 months.
DEVELOPING: The future short-term direction of any rating change cannot be determined as yet given prevailing circumstances and the fluidity of unfolding events.