Baa

(redirected from Baa Rating)
Also found in: Dictionary, Thesaurus.
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 ?
Thus, they should be a good approximation of the expected recovery rates of Baa ratings, a category falling between the high-quality investment grade bonds (like Aaa, Aa, and A) and the speculative grades (like Ba, B, and Caa-C).
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.