Bond Rating

What does it mean?
A specification of a bond issuer's probability of defaulting based on an analysis of the issuer's financial condition and profit potential.

In Other Words...
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 - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.

Corporate Bonds: An Introduction to Credit Risk - Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.

Junk Bonds: Everything You Need to Know - Don't be fooled by the name--junk bonds may be for you if you know how to analyze them.

Related Terms
AAA | Bond | Credit Cliff | Investment Grade | Junk Bond | Standard and Poor's

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