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What does an \\\'AAA\\\' credit rating mean?

What is the credit rating for the Philippines?
By Carlo P. Mallo |

First there were 17 now there are only 16 countries which belong to the elite group with a credit rating of AAA. Over the weekend, Standard & Poor\\\'s downgraded the United States’ credit rating to AA+ from its AAA, a move that has never been done before and was deemed unimaginable.

In case you are wondering which countries comprised the elite league of AAA credit ratings, these countries are mostly found in Europe, South Pacific, and North America.

Singapore is the only Asian country in the league, and so is Canada now, as the only North American Country. Australia and New Zealand also made it both to the list.

The Scandinavian countries of Finland, Norway, and Sweden, the ever-neutral Switzerland, the United Kingdom and the Isle of Man, France, Germany, Denmark, and the Netherlands, complete the list of 16.

But what does it mean to have a triple-A credit rating? As CNN Money would put it, it means that there is less risk if these countries are lent money compared to all other countries in the world.

With a triple-A rating, the counties are also able to borrow funds at a low cost because their bonds are safe and their governments stable, CNN Money added.

As for the Philppines, Standard & Poor\\\'s has ranked the country with a BB rating, which means that the government issued bonds are non-investment grade and still have a speculative future.

First there were 17 now there are only 16 countries which belong to the elite group with a credit rating of AAA. Over the weekend, Standard and Poor downgraded the United States’ credit rating to AA+ from its AAA, a move that has never been done before and was deemed unimaginable.

 

In case you are wondering which countries comprised the elite league of AAA credit ratings, these countries are mostly found in Europe, South Pacific, and North America.

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Singapore is the only Asian country in the league, and so is Canada now, as the only North American Country. Australia and New Zealand also made it both to the list.

 

The Scandinavian countries of Finland, Norway, and Sweden, the ever-neutral Switzerland, the United Kingdom and the Isle of Man, France, Germany, Denmark, and the Netherlands, complete the list of 16.

 

But what does it mean to have a triple-A credit rating? As CNN Money would put it, it means that there is less risk if these countries are lent money compared to all other countries in the world.

 

With a triple-A rating, the counties are also able to borrow funds at a low cost because their bonds are safe and their governments stable, CNN Money added.

 

As for the Philppines, Standard & Poor has ranked the country with a BB rating, which means that the government issued bonds are non-investment grade and still have a speculative future.

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