What is bond rating?

Answer Bonds are fixed-income securities. They have many different issuers, such as national, state, and municipal governments as well as businesses. There are two general classifications for bonds: inves... Read More »

Top Q&A For: What is bond rating

What is a bond level rating?

Bond level rating refers to how risky a bond is. Risky bonds--those associated with uncertain companies or unstable governments--pay higher interest rates to an investor. Wall Street institutions e... Read More »

What is the role of bond rating agencies?

The three main bond rating agencies are Standard & Poor's, Moody's, and Fitch. Each provides a rating to bonds based on the financial strength of the underlying entity. Ratings are an effort to gui... Read More »

What rating signifies a bond as junk?

A rating of "BB" or lower signifies that the bond is a "junk bond," meaning that the investment carries a high risk for loss. As a result of the risk involved with purchasing them, junk bonds often... Read More »

The Effect of Bond Rating Changes on Common Stock Prices?

When a corporate bond is issued, it is rated by several rating agencies as to the timely payment of interest and principal based on the issuer's financial condition. Bond credit rating changes can ... Read More »