AAA

AAA

AAA is the maximum possible rating given to bonds by credit rating corporations. Bonds that have an AAA rating often have a very minimal amount of risk involved.

The bond credit rating assesses the creditworthiness of a corporation’s or government’s debt issues and is used as a financial indicator to potential investors. A bond given an AAA rating means it has a very high quality investment grade, very low risk is involved, and interest plus the principal amount are both fully expected to be paid back on time. Credit rating agencies include Moody’s, Standard & Poor’s, and Fitch Ratings. Bond ratings below BBB are considered to not be investment grade and are referred to as junk bonds.

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