A rating outlook is the rating agency's view of which way a rating may move over the next one to two years: Stable (no change expected), Positive (may go up), Negative (may go down) or Developing (could go either way).
The outlook is printed after the rating, as in "CRISIL AA (Stable)". A Negative outlook does not mean a downgrade will happen, but it tells investors the agency sees pressure on the issuer's finances.
"Rating Watch" (or "Credit Watch") is stronger and shorter-term. It is used when an event, such as a merger, a large loss or a missed payment elsewhere, could change the rating soon. "Watch with negative implications" means a downgrade is possible once the agency has more information.
Related
Related terms: Credit rating · Rating downgrade · Investment grade
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This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
