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Glossary - Bond Ratings

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Learning: Knowledge

A bond rating is a credit rating assigned to bonds. Companies like Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings will grade bonds based on their ability to pay back debt. Bonds with higher ratings, such as AAA or BBB are investment grade bonds and considered more secure. Non-investment grade bonds, known as junk bonds, usually range from BB to D and are riskier investments.

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