Rating outlook

Rating outlook is the opinion of a rating agency regarding the likelihood of a rating change in the mid-term perspective.

Rating outlooks are overwhelmingly divided into the following types:

1) A positive outlook is assigned if there is a high probability of a rating upgrade due to the occurrence of favourable events for the rated entity that positively affect its ability to meet its obligations;

2) A negative outlook is assigned if there is a high degree of probability of a downgrade due to the occurrence of adverse events for the rated entity that negatively affect its ability to meet its obligations;

3) A stable outlook is assigned in case of a high probability of maintaining the rating at the same level; additionally, the rated entity may even undergo changes in any direction; however, in the medium term, these changes should not affect the rating;

4) A developing outlook is assigned in the event of an equally probable change in the rating, both upward/downward and remaining at the same level, due to the occurrence of a significant event that ambiguously affects the ability of the rated entity to meet its obligations.

So, for example, in relation to HSBC Bank Oman, Moody’s rating agency applied all four types of rating outlooks in just over two years.



Sometimes, a credit rating has the status “Rating under review / Rating under supervision”. This designation indicates a high probability of a change in the rating in the near future due to some material fact that may have a significant impact on the future financial strength of the rated entity. This designation also cancels the rating forecast.

According to the Cbonds methodology, when a rating is under review (on the CreditWatch/Rating Watch list), it is reflected without an outlook.

So, for example, the rating agencies Moody’s Investors Service, Fitch Ratings and S&P Global Ratings, in their press releases, transferred the ratings of Univar Solutions for revision (to the CreditWatch / Rating Watch list). In such cases, according to the the Cbonds methodology, the issuer ratings on the Cbonds site will be reflected without an outlook.