Is BBB+ A good credit rating?

Is BBB+ A good credit rating?

Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds.

What does BBB+ rating mean?

BBB+ BBB+ An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.

What is a sovereign credit rating?

Sovereign Credit Rating: A sovereign credit rating is an independent assessment of the creditworthiness of a country or sovereign entity. It can give investors insights into the level of risk associated with investing in the debt of a particular country, including any political risk.

What is an issuer rating?

An Issuer Rating is R&I's opinion on an issuer's general capacity to fulfill its financial obligations and is, in principle, assigned to all issuers. ... All of the financial obligations of an issuer are likely to default. D. R&I believes that all of the financial obligations of an issuer are in default.

Is BBB higher than BB?

Understanding Investment Grade "AAA" and "AA" (high credit quality) and "A" and "BBB" (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ("BB," "B," "CCC," etc.) are considered low credit quality, and are commonly referred to as "junk bonds."

Is BBB considered investment grade?

Debt (such as a bond or a loan) is considered investment grade if it has been assigned a credit rating of: BBB- or higher by Standard & Poor's.

What is the top credit score in Canada?

In Canada, according to Equifax, a good credit score is usually between 6. If your credit score is between 7 it's likely to be considered very good. A credit score of 760 and above is generally considered to be an excellent credit score. The credit score range is anywhere between 3.

Which credit rating is best?

For a score with a range between 3, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 6.

What is the difference between an issuer rating and an issue rating?

Issuer Ratings versus Issue Ratings The issuer's credit rating addresses the issuer's overall creditworthiness and usually applies to senior unsecured debt. Issue rating refers to specific financial obligations and considers ranking in the capital structure such as secured or subordinated.

Who is issuer in credit rating?

The sources of the revenue are generally the issuer of the securities or the investor. Most agencies operate under one or a combination of business models: the subscription model and the issuer-pays model.

What do BBB ratings mean?

• BBB ratings represent the BBB's opinion of how the business is likely to interact with its customers.

What does a 'BBB' downgrade mean for investors?

• Investors should be aware that an agency downgrade of a company's bonds from 'BBB' to 'BB' reclassifies its debt from investment grade to "junk" status. Although this is merely a one-step drop in credit rating, the repercussions can be severe.

What are BBB business profiles?

• BBB Business Profiles generally explain the most significant factors that raise or lower a business's rating. BBB ratings are not a guarantee of a business's reliability or performance. BBB recommends that consumers consider a business's BBB rating in addition to all other available information about the business.

What is the difference between AAA and BBB?

• "AAA" and "AA" (high credit quality) and "A" and "BBB" (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ("BB," "B," "CCC," etc.) are considered low credit quality, and are commonly referred to as " junk bonds .".