What is an AAA bond rating?

Let’s start at the beginning. An AAA bond rating Is the highest rating that one of the major credit rating agencies can assign to an issuer’s bonds. Today, there are three major credit rating agencies – Moody’s, Standard & Poor’s, and Fitch. These three agencies provide credit ratings for different types of debt securities.

Is the US credit rating AAA or AA+?

The U.S. credit rating is AAA according to two major credit reporting agencies—Fitch and Moody’s. S&P has the U.S. rated as AA+. When Did the U.S. Lose Its AAA Credit Rating?

What does a credit rating mean?

This rating corresponds with the cost of borrowing for the issuer. A letter grade is typically assigned to these bonds to represent its credit quality. Standard & Poor’s, Moody’s, and Fitch are the three private independent credit rating agencies that evaluate an issuer’s ability to repay a bond (interest and principal) on time.

What is the highest credit rating a bond can achieve?

The highest possible rating that a bond may achieve is AAA, which is only bestowed upon those bonds that exhibit the highest levels of creditworthiness. This AAA rating is used by Fitch Ratings and Standard & Poor’s, while Moody’s uses the similar “Aaa” lettering. Bonds that receive AAA ratings are viewed as the least likely to default.