Bond Credit Ratings Explained

When you look at bonds, you will see that they will have a credit rating.

These are issued to those that issue bonds in the Euromarket, and this figure does not necessarily mean that the company is any more secure than another, but it does give investors a clear idea of the generally conceived idea as to the quality of a particular bond.

There are two scales of bond credit ratings out there, which are the Standard and Poors ratings, and also the Moody's Investment Grades.

If you hear of a triple A bond, then that's as good a rating as it gets. The actual grades go from AAA right through to D, with one less letter each time and pluses and minuses and all sorts of things.

There are also what are known as junk bonds, which will be explained in more detail in another article, but the name of it is unusually descriptive in giving an idea of what the perception of the quality of that bond in the financial markets is!

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