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A credit rating is typically applied to individual tranches within a Collateralized Debt Obligation (CDO), not the entire CDO itself. Each tranche has a different level of risk and return, and therefore, each tranche receives its own credit rating. The highest tranches are usually rated AAA, indicating they have the lowest risk but also the lowest return. Lower tranches have higher risk and therefore higher potential returns, but they also have lower credit ratings. This structure allows investors to choose the level of risk and return that best suits their investment strategy.
Sources:
It's the individual tranches. With various priorities of payments, differing levels of credit enhancement, it'd be a difficult task to aggregate a rating for all of them. And it's pointless to try and rate an SPV itself as its got no economic purpose.
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