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.


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).




Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.

Corporate Bonds: An Introduction To Credit Risk - Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.

Junk Bonds: Everything You Need to Know - Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.

What Is A Corporate Credit Rating? - For investors considering buying debt securities, a credit rating is an essential tool.

Advanced Bond Concepts - This detailed tutorial explains some of the more complex concepts and calculations you need to know for trading bonds, including bond pricing, yield, term structure of interest rates, duration, and much more.
Related Terms

AAA

Bond

Credit Cliff

Investment Grade

Junk Bond

Standard and Poor's

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