Below is the system of credit ratings that Standard & Poor’s applies to bonds. Ratings can be modified with + or – signs. So an AA- is a higher rating than an A+ rating. With such modifications, BBB- is the lowest investment-grade rating. Other credit rating systems are similar.
AAA Best credit quality; extremely reliable with regard to financial obligations
AA Very good credit quality; very reliable
A More susceptible to economic conditions; still good credit quality
BBB Lowest investment-grade rating
BB Caution is necessary, best sub investment credit quality
B Vulnerable to changes in economic conditions; currently showing the ability to meet its financial obligations
CCC Currently vulnerable to nonpayment; dependent on favorable economic conditions
CC Highly vulnerable to a payment default
C Close to or already bankrupt; payment on the obligation currently continued
D Payment default on some financial obligations has actually occurred
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