Credit Quality

This is a fancy way of saying "bond rating." Credit quality refers to the investment grade associated with a mutual fund or bond. A credit rating agency like Fitch or Moody's will grade the bond based on the likelihood of default, and the quality of the assets in the vehicle. Grades may range from AAA to AA for high "credit quality" all the day down to CCC, CC, or C for junk bonds.

A lot of these agencies got in trouble during the financial crisis, because they were assigning AAA grades to bonds and mortgages that had extremely high default risks.