Baa

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Related to Baa Rating: Bond ratings, Baa3 Rating

Baa

A credit rating used by Moody's credit agency for long-term bonds and some other investments. It is subdivided (in descending order) into Baa1, Baa2, Baa3. A Baa rating is equivalent to the BBB rating range used by Fitch and S&P. A Baa rating represents a relatively low-risk bond or investment; banks are allowed to invest in Baa rated bonds. However, Baa is toward the bottom of investment-grade bond ratings, being only one grade above junk bond ratings. Risk-averse investors must therefore exercise caution in Baa investments, especially if the rating was recently downgraded.

Baa

See BBB.
References in periodicals archive ?
middle-to-upper range of the Baa rating category and moderate
This year, its debt-to-GDP should stay below 20% and interest payments-to-revenues at some 2.6%, a way below the median for the Baa rating zone.
Moody's Baa rating zone implies "moderate credit risk".
The 239 securities originally rated Baa on which action was taken represented 19 percent of the total number of Baa ratings issued in 2006; the 185 securities originally rated Ba on which action was taken represented 42 percent of the total number of Ba ratings issued in 2006; and the 7 securities originally rated A on which action was taken represented 0.6 percent of the total number of A ratings issued in 2006.