Comparative review of credit ratings Given that Moody's Investors Service and Standard & Poor's use different rating grading, Table 1 provides the comparative review of both sovereign credit ratings. Credit ratings issued by both agencies distinguish between several categories relevant to credit rating and credit risk criteria graded using letters A through C, or D to that effect. Each credit rating category includes rating grades depending on the actual appraisal of the country's position, whether it is strong, average or rather poor. In so doing, to rate these specific grades the Moody's Investors Service uses numeric grades, while the Standard & Poor's uses plus (+) or minus (-) grades. Both credit rating agencies provide outlooks in terms of trends that specific rating might report in future. Outlook is rated by using a descriptive rate, including positive, stabile, negative and developing outlook. Positive outlook means that a credit rating could be upgraded, stable means that a rating probably would not be changed, negative outlook means that a rating could be downgraded and developing outlook (contingent upon an event) means that a rating could be upgraded, downgraded or affirmed. Table 1: Comparative review of rating grades Moody's Investors ServiceStandard & Poor'sBrief description of rating category Investment grade Aaa AAA Highest quality credit rating, minimum degree of risk Aa1 Aa2 Aa3 AA+ AA AA- High quality credit rating, very low credit risk A1 A2 A3 A+ A A- Upper-medium credit rating, low credit risk Baa1 Baa2 Baa3 BBB+ BBB BBB- Medium credit rating, moderate credit risk Non-investment (speculative) grade Ba1 Ba2 Ba3 BB+ BB BB- Credit rating with speculative characteristics, substantial credit risk B1 B2 B3 B+ B B- Credit rating speculative, high credit risk Caa1 Caa2 Caa3 CCC+ CCC CCC- Poor credit rating, very high credit risk Ca C CC C SD D Highly speculative credit rating, likelihood of obligations default, selective default, default Source: Bloomberg, Moody's Investors Service, Standard & Poor's