An obligation rated ‘C’ is currently highly vulnerable to nonpayment,and the obligation is expected to have lower relative seniority or lower ultimate recovery compared to obligations that are rated higher.
A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.
C rated companies have the least future security of all. The basic conditions enabling such debtors to fulfil their financial obligations are extremely poor. Default is imminent.
Why are there no legally binding definitions of rating symbols here? Depending on the subject of the rating and the scope of application, different legal framework conditions apply, which also differ in states of different legal systems. Rating scales are the subject of a development that has lasted for more than a century. Rating agencies continue to develop their scales due to new insights, improved analytical techniques and growing or changing market requirements. Therefore, in each individual case, the evidence of a rating is to be examined as to which statement should be made with a rating. Depending on the time, subject and other conditions, rating symbols are to be interpreted differently. Therefore, we recommend detailed advice. Why are rating agencies not mentioned here by name? It is the responsibility of each rating agency to provide its definitions of rating symbols and, if necessary, to update them. It happens that different rating agencies use the same rating symbols, sometimes with comparable but sometimes with different meanings. The definitions offered by rating agencies need to be questioned because in rare cases the wording of the definitions is ambiguous and promises, for example, a certainty of judgment that we at RATING EVIDENCE can not confirm empirically.