AAA — the highest mark in a credit rating that can be assigned to an individual or juridical entity.
A credit rating is an assessment of the potential borrower concerning his general creditworthiness or the creditworthiness related to a specific debt. Such a rating is calculated based on the past and current loans of a certain person or juridical entity. Usually, it includes several credit lines, total debt load and timeliness of payment.
The credit rating is determined by the credit agencies. The main role of these ratings is to provide the potential creditors or investors with information on whether a certain individual or juridic entity can pay for the loans timely.
The credit consists of categories which are indicated by the letters of the Latin alphabet. They are listed in decreasing order from A to D. The categories AAA, AA, A and BBB belong to an investment grade, they are stable and highly beneficial. Other ones belong to the sub-investment category, they may be risky and unstable.
The category AAA indicates the highest level of creditworthiness and the lowest expectations on credit risks. It can be assigned only in case of extremely high ability to repay financial obligations timely.