Bond Ratings26th January 2021
Bond ratings are representations of the creditworthiness of corporate or government bonds. The ratings are published by credit rating agencies and provide evaluations of a bond issuer’s financial strength and capacity to repay the bond’s principal and interest according to the contract.
|Investment grade||Moody’s||Standard & Poor’s||Fitch|
|Non-investment-grade||Moody’s||Standard & Poor’s||Fitch|
|Weakest||Moody’s||Standard & Poor’s||Fitch|
Investment grade and high yield bonds
Investors typically group bond ratings into 2 major categories:
- Investment-grade refers to bonds rated Baa3/BBB- or better.
- High-yield (also referred to as “non-investment-grade” or “junk” bonds) pertains to bonds rated Ba1/BB+ and lower.