Articles on Stock markets

News, Research and Analysis

Help Center
Introduction
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate Basics
AAA/Aaa — credit rating

AAA/Aaa — credit rating

AAA — S&P / Fitch
Aaa — Moody’s

AAA/Aaa rated bond issues have an almost nonexistent chance of defaulting, according to the major ratings institutions that issue the ratings.

AAA/Aaa is the highest rating a bond issue or company can get.

In the aftermath of the 2008 financial crisis and recession, many companies, and the US Government itself, were downgraded from AAA to AA+. Only two companies in the US still retain the AAA rating: Johnson & Johnson and Microsoft.

Bonds can still receive a AAA rating even if the company issuing them does not have that rating, due to the fact that they can be backed by surety insurance contracts and hard assets.

S&P, Fitch, and Moody’s are the Big Three ratings institutions, and while they do not always give the same ratings, they are generally in-line with one another.

What is a Credit Rating?
What are Bond Ratings?

Keywords: bonds, default risk, credit rating, S&P, Moody's, Fitch, ratings agencies,