What is speculative grade rating?

A speculative credit rating indicates that the company is less likely to be able to pay back its creditors than a company with an investment-grade rating. Companies rated BB, B, CC, and C are considered speculative by Standard and Poor’s. Ratings at Fitch from BB to D are considered to be speculative.

What is A3 credit rating?

A-/A3 are medium investment grade credit ratings offered by Moody’s and Standard & Poor’s. Both ratings signify that the issuer has financial backing and some cash reserves with a low risk of default. A-/A3 is the seventh-highest rating a debt issuer can receive and is four rankings above the cutoff for junk bonds.

What is the highest speculative grade rating?

BB+
Speculative Grade bonds (also known as High Yield bonds) are those rated BB+ and below by Standard & Poor’s (S&P) or Fitch and Ba1 and below by Moody’s. These credit-rating agencies assess the credit risk of the issuer of the bonds, and assign them a credit rating based on information available at the time.

What is Moody’s issuer rating?

Moody’s short-term ratings are opinions of the ability of issuers to honor short-term financial obligations. Ratings may be assigned to issuers, short-term programs or to individual short-term debt instruments. Such obligations generally have an original maturity not exceeding thirteen months, unless explicitly noted.

What is investment grade and speculative grade?

Investment grade categories indicate relatively low to moderate credit risk, while ratings in the speculative categories signal either a higher level of credit risk or that a default has already occurred. Fitch may also disclose issues relating to a rated issuer that are not and have not been rated.

What does BB rating mean?

The BB credit rating means that there is a higher probability for default of a debt issuer or a debt instrument. This is the grade by S&P and Fitch while the respective grade by Moody’s scale is Ba2. The BB is the second-best non-investment grade.

What does a B1 credit rating mean?

B1/B+ is one of several non-investment grade credit ratings (also known as “junk”) that may be assigned to a company, fixed-income security, or floating-rate loan (FRN). This rating signifies that the issuer is relatively risky, with a higher than average chance of default.

What is a Baa2 rating equivalent to?

What is Moody’s B1 rating?

B1/B+ is a non-investment grade credit rating used by Moody’s, S&P, and Fitch for an issued debt instrument (generally a bond) or the issuer of the credit (i.e., company or business). B1/B+ are the highest quality speculative rating, followed Ba2/BB and Ba3/BB+.

Which of the following Moody’s ratings is the most speculative?

Global Long-Term Rating Scale