Credit Rating
What is Credit Rating?
An assessment of a borrower's ability to repay its debt.
Understanding Credit Rating
Agencies such as S&P Global, Moody's, and Fitch rate governments and companies. S&P and Fitch scales run from AAA (strongest) down to D (in default).
Bonds rated BBB− (Baa3 at Moody's) or higher are called investment grade; lower-rated bonds are high-yield, or junk, bonds and pay higher interest to compensate for greater risk.