T7.13 Bond Ratings
Low Quality, speculative, Investment-Quality Bond Ratings and/or “Junk”
High Grade Medium Grade Low Grade Very Low Grade
Standard & Poor’s AAA AA A BBB BB B CCC CC C D Moody’s Aaa Aa A Baa Ba B Caa Ca C C
Aaa AAA Debt rated Aaa and AAA has the highest rating. Capacity to pay interest and principal is extremely strong.
Aa AA Debt rated Aa and AA has a very strong capacity to pay interest and repay principal. Together with the highest rating, this group comprises the high-grade bond class.
A A Debt rated A has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in high rated categories.