bond rating (redirected from Bond credit rating)

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).

See also: AAA, Bond, Credit Cliff, Investment Grade, Junk Bond, Standard and Poor's

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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.

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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.