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Bond rating |
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Bond ratingA rating based on the possibility of default by a bond issuer. The ratings range from AAA (highly unlikely to default) to D (in default). See: Rating, investment grade.Bond ratingCorporate and government bonds are generally considered a safe form of investment compared to shares, in the sense that you are 'guaranteed' to get repayment of the principal and interest payments. But the value of the 'guarantee' depends substantially on who has issued the bond - a financially healthy issuer, or one that is struggling to meet its borrowing obligations.Credit rating agencies like Moody's and Standard & Poor's (S&P) and Fitch IBCA provide a service to the investment community by grading bonds according to how likely it is that the issuer will default either on interest or capital payments.For S&P the ratings vary from AAA (the most secure) to D which means the issuer is already in default.For Moody's the ratings go from Aaa to D.Only bonds with a rating of BBB or better are considered 'investment grade' - that is, secure enough for institutions to invest in. Anything below that grade is 'non-investment grade' or 'junk'.The ratings which S&P and Moody's give a bond are continually checked and revised in the light of new research done by those firms. When a bond is downgraded it is a serious event for the issuer because it makes it harder (or more expensive) to raise new borrowings, but it is also bad news for holders of the bonds, because the market invariably marks down the value of the bond.Similar MatchesOperating AssetsOperating AssetsAnother term for working capital. Stock ratingStock ratingAn evaluation by a rating agency of the expected financial performance or inherent risk of common stocks. Net operating loss carrybacksNet operating loss carrybacksThe application of losses to offset earnings in previous years. Operating leaseOperating leaseShort-term, cancelable lease. A type of lease in which the contact period is shorter than the life of the equipment, and the lessor pays all maintenance and servicing costs. Split ratingSplit ratingTwo different ratings given to the same security by two important rating agencies. Further Suggestionsoperating cash flowOperating risk Short run operating activities Chief Operating Officer (COO) Operating expenses S&P Rating Best's Ratings credit rating Morningstar rating system Operating profit margin Experience rating Net operating losses rating Credit Rating Agencies Operating leverage Operating rate Whites rating Operating in the red Appel Loan (Accelerating Payoff Progressive Equity Loan) operating costs Non Vessel Operating Common Carriers (NVOCC) Hulbert rating operating profit Operating cycle operating margin |
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