Saha Corporate Governance and
Credit Rating Services

Structured Finance Rating Definitions

Structured Finance Rating Definitions

Our long term credit ratings reflects our present opinion regarding the mid to long term period of one year and above; Our short term credit ratings reflects our opinion regarding a period of one year. Our long-term credit rating results start from AAA showing the highest quality grade and continue downward to the lowest rating of D (default). Plus (+) and minus (-) signs are used to make a more detailed distinction within categories AA to CCC.

Companies and securities rated with long-term AAA, AA, A, BBB and short-term A1 +, A1, A2, A3 categories should be considered “investment worthy” by the market. For Asset Backed Securities, aAccording to the present Turkish legislature, the topmost three categories are deemed as investment grade

Short Term Long Term Category Rating Definitions
(TR) A1+ (TR) AAA(TR) AA+

(TR) AA
(TR) AA-

First Grade The highest credit quality. Indicates that ability to meet financial obligations is extremely high. For securities, it is an indication of no more than a slight additional risk as compared to risk-free government bonds.
(TR)  A1 (TR) A+
(TR) A
Second Grade Credit quality is very high. Very high ability to fulfill financial obligations. Sudden changes at the company level and/or economic and financial conditions may increase investment risk, but not significantly.
(TR)  A2 (TR) A-(TR) BBB+ Third Grade High ability to fulfill financial obligations, but may be affected by adverse economic conditions and changes.
(TR) A3 (TR) BBB
(TR) BBB-
Forth Grade Sufficient financial ability to fulfill its obligations, but carries more risk in adverse economic conditions and changes. If securities; has adequate protection parameters, but issuer’s capacity to fulfill its obligations may weaken in face of adverse economic conditions and changes.

Companies and securities rated with long-term BB, B, CCC, and short-term B1, B2, C categories should be considered “speculative” by the market.

(TR) B1 (TR) BB+
(TR) BB
(TR) BB-
Fifth Grade Carries minimum level of speculative features. Not in danger in the short term, but faces negative financial and economic conditions. If securities; below investment level, but on-time payments prevail, or under less danger than other speculative securities. However, if the issuer’s capacity to fulfill its obligations weakens, serious uncertainties may unfold.
(TR) B2 (TR) B+
(TR) B
(TR) B-
Sixth Grade Currently has the capacity to fulfill financial obligations, but highly sensitive to adverse economic and financial conditions. If securities; there is a risk in due payment. Financial protection factors can show high fluctuations depending on the conditions of the economy, the sector, and the issuer.
(TR) C (TR) CCC+
(TR) CCC
(TR) CCC-
Seventh Grade Well below investment grade. In considerable danger of default. Fulfillment of its financial obligations depends on the positive performance of economic, sectoral and financial conditions. If securities; there are serious uncertainties about the timely payment of principal and interest.
(TR) D (TR) D Default Event of default. The company cannot meet its financial obligations or cannot pay the principal and/or interest of the relevant securities.