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Downgrade
(redirected from downgrades)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia 0.01 sec.
Downgrade
A negative change in ratings for a stock, or other rated security.

Downgrade
A change in the rating of a bond or other security in a downward direction. For example, a bond that had previously been rated AAA may be downgraded to AA. Downgrades are considered detrimental because they mean the ratings agency believes that the issuer of the security is less likely to be able to fulfill its obligations, such as coupon payments. A downgrade increases the cost of funds for the issuer because investors expect a higher return in exchange for the increased risk on the security. See also: Upgrade.


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Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
NEW YORK -- Fitch Ratings downgrades 11 Financial Security Assurance Inc.
Public Finance rating downgrades since at least 2002, when Fitch began reporting quarterly municipal rating change totals.
The downgrades reflect the effect of increased funding costs on the transaction due to failed auctions.
 
 
 
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