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AAA (credit rating)

What's the definition?

AAA is the highest credit rating given by debt analysis agencies such as Standard and Poors, Moody's, and A. M. Best. A triple-A credit rating allows a corporation or government to borrow at a low interest rate because the market accepts a small risk premium.

In contrast, companies with poor creditworthiness must often borrow at high interest rates by issuing high yield bonds (commonly referred to as "junk bonds").







The infomation above is licensed under the GNU Free Documentation License and is derived from The Free Encyclopedia.com
Bonds


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