What is speculative grade rating?

What is speculative grade rating?

A speculative credit rating indicates that the company is less likely to be able to pay back its creditors than a company with an investment-grade rating. Companies rated BB, B, CC, and C are considered speculative by Standard and Poor’s. Ratings at Fitch from BB to D are considered to be speculative.

What is the highest speculative grade rating?

According to Standard & Poor’s investment-grade credit ratings, companies awarded an AAA rating are deemed to have the highest capacity of all to repay loans. This is followed by AA+, AA, and AA-, all of which boast a high capacity to repay their loans.

What is investment grade and speculative grade?

Bonds with a rating of BBB- (on the Standard & Poor’s and Fitch scale) or Baa3 (on Moody’s) or better are considered “investment-grade.” Bonds with lower ratings are considered “speculative” and often referred to as “high-yield” or “junk” bonds.

What is the highest speculative grade long term credit rating by S&P?

In S&P Global Ratings long-term rating scale, issuers and debt issues that receive a rating of ‘BBB-‘ or above are generally considered by regulators and market participants to be “investment-grade,” while those that receive a rating lower than ‘BBB-‘ are generally considered to be “speculative-grade.”

Is Baa2 an investment grade?

Ba2/BB are ratings below investment grade but are the second-highest rating in the non-investment grade (junk or high-yield) bracket.

What does Moody’s Baa2 rating mean?

Baa2. The ninth highest rating in Moody’s Long-term Corporate Obligation Rating. Obligations rated Baa2 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is Baa1.

Is Baa3 better than Baa2?

Ba2/BB are credit ratings just below investment grade, considered more speculative. Ba2 falls above the Ba3 rating and below Ba1, while BB is above BB- and below BB+.

Is Baa3 better than baa2?

Is Moody’s Ba3 investment grade?

Ba3/BB- is a credit rating used by Moody’s, S&P, and Fitch for an issued debt instrument (generally a bond) or the issuer of the credit (i.e. company or business) that are below investment grade (i.e. “junk bonds”). Moody’s uses the Ba3 rating, while S&P and Fitch use BB-.


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