Why are bond ratings so important?

Answer Businesses and governments issue bonds to raise money, usually for capital projects. Bond ratings are important because they directly affect how much interest those entities will have to pay to get... Read More »

Top Q&A For: Why are bond ratings so important

How are bond ratings determined?

While not all bonds are rated, most companies and municipalities pay one of the three major ratings agencies to assign a rating to their bonds. The agencies determine bond ratings by thoroughly ana... Read More »

Bond Quality Ratings?

Bond ratings measure the creditworthiness of government agencies or corporations that issue debt obligations. According to the U.S. Securities and Exchange Commission (SEC), ratings are considered ... Read More »

What is the meaning of bond ratings?

Bonds are fixed-income securities with more than a 10-year lifespan. The return on a bond depends on the company's risk of default; the lower the default risk, the higher the bond rating. In the ti... Read More »

How to Measure the Performance of Corporate Bond Ratings?

Corporate bond ratings are assigned to debt offered by corporations. The ratings are assigned by a ratings agency, the largest of which include Moody's, Standard & Poors and Fitch Ratings. The rati... Read More »