Bond Rating
A specification of a bond issuer's probability of defaulting based on an analysis of the issuer's financial condition and profit potential.
Investopedia Commentary
Bond rating services are provided by Standard & Poor's, Moody's Investors Service, and Fitch Investors Service.
Bond ratings start at AAA (denoting the highest investment quality) and usually end at D (meaning payment is in default).
Related Links
Bond Basics Tutorial
Corporate Bonds: An Introduction To Credit Risk
Junk Bonds: Everything You Need to Know
What Is A Corporate Credit Rating?
Advanced Bond Concepts
See also: AAA, Bond, Credit Cliff, Investment Grade, Junk Bond, Standard and Poor's
bond rating
Fitch, Moody's, and Standard & Poor'suse AAA as their highest rating and grade down through Bs and Cs. (D is used only by Fitch.) Debts rated AAA, AA, A, and BBB are considered investment-grade. Higher rated bonds provide lower returns, the price an investor pays for greater safety. Compare stock rating. See also interest coverage.