Asked by
Alyssa Underwood
on Dec 02, 2024
Verified
Bond ratings below Moody's Baa and S&P's BBB are considered of lower quality and risky.
Moody's Baa
Moody's Baa rating denotes bonds that are considered medium-grade, subject to moderate credit risk, and as such, investors should investigate further.
S&P's BBB
A credit rating by Standard & Poor's that indicates an investment grade with moderate credit risk.
Bond Ratings
A system used to assess the credit quality and risk level of bonds, typically assigned by rating agencies.
- Acknowledge the critical importance and implications of bond ratings for businesses in their endeavors to procure capital.
- Distinguish the variations and intentions of multiple bond forms, namely junk bonds, secured versus unsecured bonds, and registered securities.
Verified Answer
ME
Learning Objectives
- Acknowledge the critical importance and implications of bond ratings for businesses in their endeavors to procure capital.
- Distinguish the variations and intentions of multiple bond forms, namely junk bonds, secured versus unsecured bonds, and registered securities.