Financial Strength Rating Scale
The Kroll Bond Rating Agency (KBRA) financial strength rating is a measure of the overall financial condition of an institution and its ability to meet its credit obligations.
- A An institution in sound financial condition that is well capitalized, liquid and profitable. The entity is highly likely to meet its credit obligations under severe economic, financial and business conditions.
- B An institution with an adequate financial condition that is likely to meet its credit obligations under difficult economic, financial and business conditions.
- C An institution with an adequate financial condition but is more susceptible to adverse changes in economic conditions that could affect its ability to meet its credit obligations.
- D An institution whose financial condition is judged to be relatively weak and its ability to meet financial obligations could be affected by adverse economic, financial or business conditions.
- E An institution that is likely to have financial problems and poor financial ratios. Careful consideration should be made concerning investments in this institution. The institution has a much higher probability of failure than institutions with higher ratings.
- NB A new institution which is less than three years old and which is not rated, but its financial data is presented and an an "NB" is shown in the rating field.
- NT A New savings & loans, which are less than three years old and which is not rated, but its financial data is represented and an "NT" is showing in its rating field.
- NR An atypical bank, bank holding company, S&L, or an institution missing key financial data necessary to derive a rating.
- Note: KBRA may append + or - modifiers to ratings in categories A through C to indicate, respectively, upper and lower risk levels within the broader category.