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.
- AAn institution in strong 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.
- BAn institution in sound financial condition that is likely to meet its credit obligations under difficult economic, financial and business conditions.
- CAn 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.
- DAn 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.
- EAn 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.
- NBA 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.
- NTA 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.
- NRAn 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.