Definition of «bond rating»

A bond rating is a measure of creditworthiness assigned to bonds, which are loans made by investors to organizations such as corporations or governments. The bond rating indicates how likely an issuer is to make timely payments on its debt obligation and helps investors determine the risk associated with purchasing the bond. Bond ratings are typically issued by credit rating agencies, which analyze various financial metrics of the issuer to arrive at a score that reflects their assessment of the organization's ability to repay its debts. The higher the bond rating, the lower the perceived risk for investors and the more attractive the bond is to potential buyers.

Phrases with «bond rating»

Sentences with «bond rating»

  • (Note that a ratio of over 90 % has been identified by bond rating agencies as being problematic for retaining our valued AAA - credit rating). (boardoftrade.com)
  • «We're one of the few cities in the country with a fully funded pension» with a healthy rainy day fund and a AAA bond rating, she says. (courant.com)
  • The short - and medium - term «risk - free» government bond rates for the G - 5 countries all currently reside in negative territory (see Figure 1). (researchaffiliates.com)
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