Ratings Agencies

To help investors assess the risks of various bond issues, there are rating agencies that classify bonds by risk.

The two main bureaus, Moody's and Standard & Poor's, assign ratings based on the ability to pay interest and the probability that principal will be paid on time.

The best rating is AAA. Bonds with a rating lower than BBB are considered risky investments. Agencies sometimes revise their corporate bond ratings, and a downgrade of the highest-rated company can make headlines.

Made famous by American financier Michael Milken in the 1980s, junk bonds are bonds rated less than BBB by Standard & Poor's or BAA by Moody's. They usually offer high interest rates to offset the higher risk.

Literal Meanings of Ratings Agencies

Ratings:

Meanings of Ratings:

1. Position on the scale.

2. Assessment of the situation, in particular the financial situation.

3. A number, letter, or other symbol that indicates the capacity of something.

4. Sailor on a warship.

5. The status of a seaman, assimilated to the rank of an officer.

Sentences of Ratings

1. You have bad credit.

2. He has a high rating in chess.

Agencies:

Synonyms of Agencies

management, instrumentality, activity, action, means, operation