Standard and Poor's Underlying Rating (SPURs)
What Is Standard and Poor's Underlying Rating (SPURs)?
Standard and Poor's Underlying Ratings (SPURs) give an assessment on a municipality's credit quality separate from guarantor or insurer credit enhancements. Municipal or other public sector bonds commonly incorporate credit enhancement which is utilized to get better terms by giving increased assurance that the borrower will respect its obligation through extra insurance or a third-party guarantee. Standard and Poor issues a SPURS rating just at the request of the issuer/obligor and keeps up with surveillance of an issue with a distributed SPUR.
Figuring out Standard and Poor's Underlying Rating (SPURs)
Standard and Poor's Underlying Ratings (SPURs) include a similar level of logical survey by Standard and Poor's as issue ratings, are distinguished by the 'Spike' assignment, and utilize S&P's standard rating scales. Conversely, S&P's issue credit ratings incorporate the creditworthiness of any guarantors, insurers, or different forms of credit enhancement, as well as the currency the obligation is named in.
Benefits of SPURs
A municipality might request a SPURs rating to show creditworthiness as an issuer and assist with drawing in investors. These days, a great deal of investors like to have extra data with respect to creditworthiness for assessing various bonds. This empowers them to settle on better-informed decisions, while simultaneously, giving municipalities and bond issuers access to a more extensive pool of expected investors.
Features
- Standard and Poor issues a SPURS rating just at the request of the issuer/obligor and keeps up with surveillance of an issue with a distributed SPUR.
- To get a bare-bones take a gander at a city's credit quality, SPURs are utilized to strip away this multitude of credit enhancement features.
- Standard and Poor's Underlying Ratings (SPURs) give an assessment on a municipality's credit quality separate from guarantor or insurer credit enhancements.
- Ordinarily, municipal bonds and other public sector bonds improve their credit.
- SPURs include similar level of scientific audit as issue ratings.
