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bond rating

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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.

Notes:
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).


Bond rating
A rating based on the possibility of default by a bond issuer. The ratings range from AAA (highly unlikely to default) to D (in default). See: Rating, investment grade.

bond rating
The grading of a debt security with respect to the issuer's ability to meet interest and principal requirements in a timely manner. The three major rating servicesFitch, 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.

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The preferred shares are rated Pfd-3 (High) by Dominion Bond Rating Service (DBRS) and P-3 (High) by Standard and Poor's (S&P).
If the increase isn't approved in the next several weeks, the municipal utility's bond rating will suffer and ratepayers will be socked with higher interest payments in the long term, DWP officials said.
There are financial advisors to handle the preliminaries, bond counsel for all the legal complexities, and--perhaps most crucial of all these days--the three bond rating agencies.
 
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