Non-Investment-Grade Bonds

Bond Rating
Bond rating refers to the method of evaluating the possibility of default by a bond issuer, such as a corporation or government body. Prominent agencies like Fitch Ratings, Standard & Poor's, and Moody's assess the financial strength of issuers and provide ratings that range from AAA (highly unlikely to default) to D (in default). Bonds rated BB or below are considered non-investment grade.

Accounting Terms Lexicon

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