Ratings Agencies
To help investors assess the risks of various bond issues, there are rating agencies that classify bonds by risk.
The two main bureaus, Moody's and Standard & Poor's, assign ratings based on the ability to pay interest and the probability that principal will be paid on time.
The best rating is AAA. Bonds with a rating lower than BBB are considered risky investments. Agencies sometimes revise their corporate bond ratings, and a downgrade of the highest-rated company can make headlines.
Made famous by American financier Michael Milken in the 1980s, junk bonds are bonds rated less than BBB by Standard & Poor's or BAA by Moody's. They usually offer high interest rates to offset the higher risk.
Literal Meanings of Ratings Agencies
Ratings:
Meanings of Ratings:
Position on the scale.
Assessment of the situation, in particular the financial situation.
A number, letter, or other symbol that indicates the capacity of something.
Sailor on a warship.
The status of a seaman, assimilated to the rank of an officer.
Sentences of Ratings
You have bad credit.
He has a high rating in chess.
Agencies:
Synonyms of Agencies
management, instrumentality, activity, action, means, operation
