| A credit rating given to a government or corporate bond that indicates that the agency giving the rating (for example, Standard & Poors, Moodys or Fitch) thinks the issuer has strong creditworthiness and is unlikely to default. The grades used by two of the leading agencies are as follows: Moodys AAA / S&P AAA for the highest quality, lowest risk bonds, down to Moodys Baa / S&P BBB for quality bonds with an adequate capacity to pay interest and principal but which are more vulnerable to adverse economic conditions. All those at Baa/BBB or above are adjudged investment grade.
|
