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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Bond Rating

Definition:

An evaluation from a rating agency such as S&P, Moody's or Fitch as to the relative strength of a bond. The highest rating indicates that there is miniscule risk of default, either as to interest or principal. Lower ratings indicate gradually greater default risks. In the S&P world, BBB is the highest rating for an "investment grade" bond. Anything lower than BBB is considered junk, er, high-yield. Caveat emptor.

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