Amanda Stanhaus

Tag: rating

Bond Rating

Just like in school, when I got a grade for my book report, bonds get grades based on their quality. Moody’s, Standard & Poor’s and Fitch hand out the grades. The grades range from AAA to C. Conveniently, the bond makers pay these companies to grade them. Wouldn’t school have been easier if I had been paying my teacher?

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Credit rating

A measurement of a bond’s likelihood of paying up. Ranges from the best (AAA) to the worst (C) to the bankrupt (D).

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)