Is BBB+ a good credit rating? (2024)

Is BBB+ a good credit rating?

BBB- Considered lowest investment-grade by market participants. BB+ Considered highest speculative-grade by market participants. BB Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.

What does BBB+ rating mean?

BBB+ An obligor has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circ*mstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. Baa2. BBB.

Is a BBB+ bond rating good?

Investors typically group bond ratings into 2 major categories: Investment-grade refers to bonds rated Baa3/BBB- or better. High-yield (also referred to as "non-investment-grade" or "junk" bonds) pertains to bonds rated Ba1/BB+ and lower.

Is BB+ a credit rating?

Ba1/BB+ is a rating designation by Moody's Investor Service and S&P Global Ratings that signifies higher degrees of default risk. B1/B+ is the highest quality credit rating for non-investment grade bonds. A bond rating is a grade given to bonds that indicates their credit quality.

Is AA better than A+?

For example, with S&P and Fitch, a rating of AA+ is better than AA, and a rating of AA- is worse than AA but better than A+. Moody's uses numbers to indicate relative quality, with Aa1 being the best Aa rating, followed by Aa2 and Aa3.

What is the difference between BB and BB+?

BB+ credit rating is a notch above BB, which is a slightly lower credit risk, and BB- credit rating is a notch below BB, and a slightly higher credit risk. Note that BB+, BB and BB- are credit ratings specific to Standard & Poor and Fitch credit agencies.

What does fitch rating BBB+ mean?

Good credit quality

'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

What is the yield of BBB+ bond?

US Corporate BBB Effective Yield is at 5.98%, compared to 5.92% the previous market day and 5.42% last year. This is higher than the long term average of 5.27%.

What is the safest bond rating?

Investment grade bonds are assigned “AAA” to “BBB-" ratings from Standard & Poor's and Fitch, and "Aaa" to "Baa3" ratings from Moody's. Junk bonds have lower ratings. The higher a bond's rating, the lower the interest rate it will carry, due to the lower risk, all else equal.

How risky are a rated corporate bonds?

Rating Risk

That said, investment-grade bonds, corporate or government, are considered relatively safe investments. Bonds are rated by three competing agencies: Standard & Poor's Global Ratings, Moody's, and Fitch Ratings. There are other rating agencies, some of them specializing in particular industries.

Is BB+ higher than BBB?

BBB- Considered lowest investment-grade by market participants. BB+ Considered highest speculative-grade by market participants. BB Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.

Is a 900 credit score possible?

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

Are BBB bonds safe?

The highest-quality bonds are rated Aaa at Moody's and AAA at S&P and Fitch, with the scales declining from there. Moody's ratings of Baa3 and BBB at S&P and Fitch are considered the lowest investment-grade ratings. Ratings below this are considered high-yield or junk.

Does the US still have a AAA credit rating?

Home / Economy / Articles / What is the US credit rating, and what does its downgrade mean? On August 1, 2023, Fitch Ratings, one of the country's three major credit rating agencies, announced that it had downgraded the US credit rating from AAA to AA+.

What is the BB+ rating for S&P?

What Are Ba1/BB+? Ba1/BB+ are rating designations by Moody's Investor Service and S&P Global Ratings, respectively, for a credit issue or an issuer of credit that signify higher degrees of default risk on the agencies' rating spectrums. Ba1/BB+ sits just below investment-grade ratings.

What is the highest S&P rating?

'AAA' is the highest issuer credit rating assigned by S&P Global Ratings. An obligor rated 'AA' has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.

Is BBB rating investment grade?

The rating of BBB- from Standard & Poor's and Baa3 from Moody's represents the lowest possible ratings for a security to be considered investment grade.

Is a B+ rating good for a bank?

B1/B+ are one of several non-investment grade credit ratings (also known as "junk") that may be assigned to a company, fixed-income security, or floating-rate loan (FRN). These ratings signify that the issuer is relatively risky, with a higher-than-average chance of default.

What does BB foundation mean?

BB cream, short for beauty balm or blemish balm, is a skin-first product, meaning it's meant to hydrate, illuminate, protect, or mattify the skin. BB cream is basically a multitasking skin care, makeup hybrid, that offers sheerer coverage than foundation.

What are the 5 levels of credit scores?

Lenders may also use your credit score to set the interest rates and other terms for any credit they offer. Credit scores typically range from 300 to 850. Within that range, scores can usually be placed into one of five categories: poor, fair, good, very good and excellent.

What is considered junk bond?

Junk bonds have a lower credit rating than investment-grade bonds, and therefore have to offer higher interest rates to attract investors. Junk bonds are generally rated BB[+] or lower by Standard & Poor's and Ba[1] or lower by Moody's. The rating indicates the likelihood that the bond issuer will default on the debt.

What is the debt rating of Paramount?

With the change Wednesday, S&P now has a issuer credit rating on Paramount Global and its senior unsecured debt of of “BB+,” which is the “highest speculative-grade by market participants.” At the same time, S&P lowered its issue-level rating on Paramount Global's junior subordinated debt to “BB-” from “BB” and its ...

What is the interest rate for BBB credit rating?

Current interest rates are notably higher than the lows reached in 2021. The median coupon rate of a 'BBB' bond from a nonfinancial issuer reached a low of 2.4% in the U.S. and less than 1% in Europe in 2021. By 2023, the median coupon rate had risen to 5.5% in the U.S. and 4.25% in Europe (see charts 15 and 16).

Are high-yield bonds junk?

Bonds rated below Baa3 by ratings agency Moody's or below BBB by Standard & Poor's and Fitch Ratings are considered “speculative grade” or high-yield bonds. Sometimes also called junk bonds, these bonds offer higher interest rates to attract investors and compensate for the higher level of risk.

Are high-yield bonds junk bonds?

High-yield bonds, or junk bonds, are corporate debt securities that pay higher interest rates than investment-grade bonds. High-yield bonds tend to have lower credit ratings of below BBB- from Standard & Poor's and Fitch, or below Baa3 from Moody's.