BBB(redirected from Triple B)
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A credit rating used by the S&P and Fitch credit agencies for long-term bonds and some other investments. It is equivalent to the Baa2 rating used by Moody's. A BBB rating represents a relatively low-risk bond or investment; banks are allowed to invest in BBB rated bonds. However, it is toward the bottom of investment-grade bond ratings, being only two grades above junk bond ratings. Risk-averse investors must therefore exercise caution on BBB investments, especially if the rating was recently downgraded.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. A BBB rating is the lowest rating a bond can have and still be considered investment-grade. Also called Baa.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.