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Credit ratings

Current ratings and reports from S&P, Moody’s and Fitch across Lloyds Banking Group entities.

Ratings definitions

Standard and Poor's

  • An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitments on the obligation is very strong
  • An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories, However, the obligor's capacity to meet its financial commitments on the obligation is still strong
  • An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor's capacity to meet its financial commitments on the obligation
  • Ratings from 'AA' to 'BBB' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories

Moody's

  • Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk 
  • A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk 
  • Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics
  • The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category

Fitch

  • AA: Very high credit quality - ‘AA’ ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events
  • A: High credit quality - ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings
  • BBB: Good credit quality - ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity
  • The modifiers '+' or '-' may be appended to a rating to denote relative status within major rating categories