S&P ratings explained:

• An S&P credit rating is an independent assessment of an organisation’s creditworthiness and ability to meet financial commitments.
• The S&P credit rating scale runs from AAA to D; AA- sits near the top of the scale and indicates very strong financial strength.
• For lease security, the strength of the financial institution or insurer behind the guarantee matters to both tenants and landlords.
• eGuarantee’s Lease Bonds are backed by HDI Global Specialty SE, an AA- rated insurer, while being issued by Credeq Australia under its Australian Financial Services Licence.

An S&P credit rating is an independent opinion of an organisation’s ability to meet its financial commitments. An AA- rating indicates very strong financial strength.

When it comes to securing a commercial lease, tenants and landlords want the same thing: certainty. Traditionally, that certainty came from bank guarantees. But times have changed and there are now alternative options.

Standard and Poor’s — commonly known as S&P — is part of S&P Global Ratings, one of the world’s leading credit rating agencies. Its credit ratings act as a benchmark for financial strength, giving businesses and investors confidence in the institution behind a financial product.

When you see an S&P rating, you’re seeing an independent measure of creditworthiness. A rating is an opinion, not a guarantee, and should be considered alongside other relevant information.

How S&P decides a rating

The S&P ratings are determined through a team of credit analysts that study the company’s financial statements, debt profile, business strategy, market conditions and risk exposure. The findings are then presented to a credit rating committee made up of senior, experienced analysts who then decide on the final rating.

How often ratings are reviewed

S&P Global Ratings typically conducts a full review of a rated entity at least annually to ensure the rating reflects its financial position and market environment. Beyond that annual review, S&P monitors rated entities continuously and may change a rating when there is a significant financial, economic or industry development.

S&P’s credit rating scale ranges from AAA as its highest rating category, to D, which indicates default. Ratings from AA to CCC may also include a plus (+) or minus (-) to show relative standing within that category.

• AAA: Extremely strong capacity to meet financial commitments
• AA: Very strong capacity to meet financial commitments
• A: Strong capacity to meet financial commitments, though more susceptible to adverse conditions than AA or AAA
• BBB: Adequate capacity to meet financial commitments, though adverse conditions are more likely to weaken this capacity
• BB: Less vulnerable in the near term, but faces major ongoing uncertainties
• B: More vulnerable to adverse business, financial or economic conditions
• CCC: Currently vulnerable and dependent on favourable conditions to meet commitments
• CC: Highly vulnerable
• C: Very highly vulnerable
• D: In default or in breach of an imputed promise

What does an AA- rating mean?

An AA- rating sits near the top of S&P’s rating scale and indicates very strong financial strength and a very strong capacity to meet financial commitments. The minus sign places it at the lower end of the AA category, but it remains above the A category.

In practice, that means:

• Confidence in resilience, even in challenging markets
• Recognition of reliability worldwide
• Strength that is one category below AAA, S&P’s highest rating category

How AA- compares to the Australian banks

Based on the latest available S&P publications at September 2026, HDI Global Specialty SE’s AA- rating is comparable with the long-term issuer ratings held by several major Australian banks.

HDI Global Specialty SE: AA-

National Australia Bank: AA-

Westpac Banking Corporation: AA-

Commonwealth Bank of Australia: AA-

Macquarie Bank Limited: A+

Source: S&P Global Ratings

Credit ratings don’t just measure financials; they are used to influence trust and decision-making with an entity or product.

• High ratings = lower risk and greater confidence.

• Low or no ratings = uncertainty, leaving landlords and tenants exposed to potential instability.

For landlords, the rating behind a Lease Bond matters. An S&P AA- rating signals the strong financial standing of the insurer backing eGuarantee’s Lease Bonds.

eGuarantee’s Commercial Lease Bonds provides a smarter way for tenants to secure their leases without tying up capital in a bank guarantee. Instead of locking away cash, businesses can redirect working capital toward growth while landlords still receive reliable security.

The Lease Bond solution is issued by Credeq Australia (ABN 39 625 083 810), an Australian Financial Services Licensee (AFSL 568636), which operates as a Managing General Agent on behalf of HDI Global Specialty SE.

Looking for a way to secure your lease without locking away cash? Explore eGuarantee’s Lease Bond options for tenants, including office tenants looking for an AA- rated insurer. 

Are you a landlord? eGuarantee provides secure, digital lease security designed to support landlords and their tenants.

Talk to our team today about an AA- rated Lease Bond for your commercial property needs.