Bond ratings
Moody's Investor Services | Description | Standard & Poor's | Description | Fitch Ratings | Description | Grading |
---|---|---|---|---|---|---|
Aaa | Obligations of the highest quality, subject to the lowest level of credit risk | AAA | The obligor's capacity to meet its financial commitment on the obligation is extremely strong | AAA | Exceptionally strong capacity for payment of financial commitments | Investment grade securities / bonds - highly rated corporate bonds / debt securities usually have Moody's rating Baa or higher, Standard&Poor's and Fitch Ratings rating BBB or higher |
Aa | Obligations of high quality, subject to very low credit risk | AA | The obligor's capacity to meet its financial commitment on the obligation is very strong | AA | Very strong capacity for payment of financial commitments | |
A | Obligations of upper-medium grade, subject to low credit risk | A | The obligor's capacity to meet its financial commitment on the obligation is strong | A | The capacity for payment of financial commitments is strong, but may be more vulnerable to adverse business or economic conditions | |
Baa | Obligations of medium-grade, subject to moderate credit risk, may possess certain speculative characteristics | BBB | Adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation | BBB | The capacity for payment of financial commitments is adequate but adverse business or economic conditions are more likely to impair this capacity | |
Ba | Obligations are speculative, subject to substantial credit risk | BB | Major ongoing uncertainties or exposure to adverse business, financial, or economic conditions could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation | BB | An elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time | |
B | Obligations are speculative, subject to high credit risk | B | Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation | B | Financial commitments are currently being met, but capacity for continued payment is vulnerable to deterioration in the business and economic environment | |
Caa | Obligations are speculative, of poor standing, subject to very high credit risk | CCC | In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation | CCC | Default is a real possibility | Junk debt securities / bonds of lowest grade, it’s very probable that an issuer won’t be able to meet his obligations |
Ca |
Obligations are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest |
CC | An obligation is currently highly vulnerable to nonpayment | CC | Default of some kind appears probable | |
C |
Obligations are the lowest rated and are typically in default, with little prospect for recovery of principal or interest |
C | Obligations are currently highly vulnerable to nonpayment, or obligations have payment arrearages, or an issuer is the subject of a bankruptcy petition or similar action | C | Default appears imminent or inevitable | |
D |
An obligation is in payment default ![]() |
D | Indicates a default | |||
NR | Not rated |
Default: non-performance of obligations, insolvency