Bond ratings Definition
Letter grades assigned to a bond issue by a rating agency (Moody’s or Standard & Poor’s) that point out the investment quality of a bond.
Bond Ratings
| Moody's |
Explanation |
| Aaa |
Highest quality |
| Aa |
High-grade |
| A |
Upper medium grade |
| Baa |
Medium grade |
| Ba |
Lower medium grade or speculative |
| B |
Speculative |
| Caa |
Highly speculative |
| Ca |
Near default or in default |
| C |
Lowest grade |
|
|
| Standard & Poor's |
Explanation |
| AAA |
Highest quality |
| AA |
High-grade |
| A |
Upper medium qrade |
| BBB |
Medium grade |
| BB |
Speculative |
| B |
Low grade, speculative |
| CCC |
Poor-quality, default possible |
| CC |
Highly speculative |
| C |
Given to Income bonds on which no interest is
paid |
| D |
In default |