Bond Quality Ratings
Bond Quality Ratings | Definition
A system of gradation for measuring the relative investment qualities of bonds by the use of rating symbols, which range from the highest investment quality (least investment risk) to the lowest investment quality (greatest investment risk). Two agencies provide the rating systems for companies' credit: Standard & Poor's and Moody's Investor Services.
Standard and Poor's Rating Scale
| A1+ | Highest grade |
| A1 | High grade |
| A | Upper medium grade |
| B1+ | Medium grade |
| B1 | Lower medium grade |
| B | Speculative |
| C1+ & Cl | Outright speculations |
| C | Income bonds paying no interest and the best defaulted bonds |
| D1 & D | In default, with the D symbol assigned to issues that appear to have little recoverable value. |
For over 1,000 additional terms and definitions please see our Investment Glossary Guide.
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