SGL Rating financial definition of SGL Rating
Speculative Grade Liquidity Rating (redirected from SGL Rating)
Speculative Grade Liquidity Rating
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Speculative Grade Liquidity Rating (SGL)
Assessment of a firm's ability to meet obligations coming due during the next twelve months. The SGL rating system was developed by Moody's Investors Service to provide guidance regarding a company's liquidity risk and the possibility of default. Rating assignments range from SGL-1 (very good) to SGL-4 (weak).
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive
8) Exposure to assets with weak liquidity: The presence of assets with Moody's weakest SGL rating
of SGL-4, exposes the notes to additional risks if these assets default.
The number of companies with Moody's lowest SGL rating
of SGL-4 in May -- 47 -- matched the number in the previous peak month of March 2008, which was the highest since the introduction of the liquidity rating in October 2002.
We estimate that TERP will need to draw down a substantial all of its $725 million revolver, accounting for the downgrade of its SGL rating
to SGL-4 from SGL-3.
The upgrade of Boardriders' CFR and SGL ratings
reflect the improved leverage and liquidity position that resulted from the bankruptcy process, which eliminated approximately $580 million of debt from the capital structure, and the subsequent successful exchange offer, which extended the maturity of approximately EU136 million of debt to 2020 from 2017.
The historical default rate is far higher for companies with SGL-4 ratings than those with other SGL ratings
. Due to the deal's high exposure to SGL-4 rated assets, which constitute around $4.0 million of par, Moody's ran a sensitivity case defaulting those assets.