FIRST CREDIT ADVISORS

When our clients have asked us about rating systems, First Credit Advisors has recommended a system that focuses on the basics. 

A municipal issue is rated either:

Investment- Grade or Non-Investment Grade.

If a municipal issue is determined to be investment grade it may fall into the following categories:

                Upper Level

                Mid Level

                Lower Level

Further qualifications such as positive outlook or negative outlook may be added. If there is no qualification the credit can be assumed to be stable.

If a municipal security is rated Lower Level(negative outlook) the holder is being told that the credit is in danger of becoming Non-investment Grade.

MONITORING

When setting up a municipal issue for credit review or appraisal, First Credit Advisors is essentially giving our client a snap shot of the financial picture of that credit at a point in time. We do look back in time to discern any material trends. However, extending those trends into the future for an indefinite time is a mistake. Trends need to be monitored, negative trends in particular. Credit monitoring is an essential service for several of our clients.