The rating criteria for bond credit ratings, and what are the grades of bond ratings

is the highest grade of bond, which is characterized by:

Maximum security of principal and earnings; They are less affected by the economic situation; They have a lower level of income and lower financing costs.

For A-rated bonds, changes in interest rates are more important than changes in economic conditions. Therefore, A-rated bonds are generally referred to as "gilts" with good reputation, which are a better choice for investors or value keepers who pay special attention to interest income. It is particularly attractive to skilled** investors, who are reluctant to buy only lower-yielding A-rated bonds, and are willing to take a risk to buy higher-yielding B-rated bonds.

The characteristics of B-rated bonds are: the security, stability and interest income of the bond will be affected by economic instability; Changes in the economic situation have a significant impact on the value of such bonds; Investors take some risks, but the level of returns is higher, and the cost and expense of raising funds are also higher.

Therefore, investors must have a good ability to select and manage B-rated bonds. For investors who are willing to take a certain amount of risk and want to achieve higher returns, investing in B-rated bonds is a better choice. It is a speculative or gambling bond.

From a normal investment perspective, it doesn't make much economic sense, but for investors who dare to take risks and try to make huge gains from price spreads, C and D rated bonds are also an alternative investment object.

Credit rating classification.

Bond ratings: AAA, AA, A, BBB, BB, B, CCC, CC, C. According to the Guiding Opinions of the People's Bank of China on Credit Rating Management, the meaning of bond ratings is as follows.

AAA: Strong ability to repay debts, largely unaffected by adverse economic conditions, and extremely low risk of default.

AA: Strong ability to repay debt, less affected by adverse economic conditions, and low risk of default.

Grade A: Strong ability to repay debts, more susceptible to adverse economic conditions, and lower risk of default.

BBB rating: the ability to repay debts is average, it is greatly affected by the unfavorable economic environment, and the default risk is average.

BB rating: Weak ability to repay debts, highly affected by adverse economic conditions, and high risk of default. Accompaniment.

Grade B: The ability to repay debts is more dependent on a favorable economic environment, and the risk of default is high.

CCC-rated: The ability to repay debts is extremely dependent on a favorable economic environment, and the risk of default is extremely high.

CC level: Less protection in the event of bankruptcy or reorganization, with little guarantee of debt repayment.

Class C: Inability to repay debts.

With the exception of AAA, CCC, and below the CCC rating, each bond grade can be fine-tuned with a "+" to indicate a slightly higher or slightly lower rating. The credit rating of short-term bonds in the interbank bond market is divided into four and six grades.

The bond rating standards of rating agencies can be divided into AAA, AA, A, BBB, BB, B, CCC, CC, C, and D from high to low. The first four types of bonds are highly creditworthy, low-risk, and are "investment grade bonds"; Bonds from Level 5 onwards have very low credit and are "speculative bonds". Bond credit rating.

Most of them are corporate bonds.

Credit rating is an independent legal personality.

The reliability of the repayment of principal and interest on the specific bonds issued by the enterprise is evaluated, and its credit rating is indicated.

This credit rating provides investors with the purchase of bonds as well as bonds in the ** market.

The provision of information services through the popular communication and transfer. Extended Information: The main reason for bond credit ratings is to facilitate investors' bond investment decisions.

Investors take a certain amount of risk when buying bonds. If the issuer fails to repay the principal and interest at maturity, the investor suffers a loss, which is known as credit risk.

The credit risk of a bond varies depending on its ability to repay after issuance. For investors, especially small and medium-sized investors, it is very important to know the credit rating of bonds in advance. Due to time, knowledge and information constraints, many bonds could not be analyzed and selected.

Therefore, it is necessary for a professional institution to conduct an objective, fair and authoritative assessment of the debt repayment reliability of the bonds to be issued, that is, to conduct a bond credit rating, so as to facilitate investors' decision-making.

Bond rating refers to the determination of the reliability of the performance of the principal and interest, in other words, the probability (degree) of default that the principal and interest of the bond cannot be repaid due to the non-performance of the debt.

The object of bond rating is credit risk, excluding other types of risk, such as interest rate risk, and the bond rating does not make any recommendations on which bonds to invest in. In the bond market, bond ratings play an important role.

With the continuous expansion of the types and scale of bonds, investors may not have time to carefully consult and analyze the large amount of information disclosed by many enterprises. On the other hand, it may also face the omission of effective information of the enterprise, and cannot be comprehensively and scientifically analyzed. All these circumstances will affect investors to make the right investment decisions. In this way, it is necessary to have a special institution, take advantage of experts, use objective, fair and scientific methods to evaluate the bonds issued by enterprises, and use simple symbols to indicate their ratings to provide a basis for investors' investment choices, which is the bond rating.

Extended Information] Significance of Bond Ratings:

1. The credit rating result is the main basis for the risk pricing of bonds and other financial products under the condition of interest rate liberalization.

Different corporate bonds, their credit quality is very different, low credit rating bonds, investors bear a large risk, should get a higher return, so the interest rate can be set higher, especially in the current corporate bond interest income is subject to 20 individual income tax; On the other hand, with higher-rated bonds, investors take less risk, so interest rates can be set relatively low. Therefore, the credit spread of the bond can be determined by the credit rating of the bond, and the bond interest rate should be added to the risk premium determined by the credit rating on the basis of the benchmark interest rate, and different interest rates can be determined according to different rating results, so as to truly reflect the credit quality of the issuer.

Second, credit ratings are conducive to maintaining the stability of the bond market.

Credit rating is an important access condition for the bond market, which creates a good atmosphere in the bond market by screening bond issuers, improves investment transparency, protects the legitimate rights and interests of investors, and prevents systemic risks in the bond market.

3. Credit rating is conducive to revealing risks to investors.

Although institutional investors have the ability to judge investment risks, the cost of analysis is high, and the use of credit rating results can reduce costs, while small and medium-sized investors do not have the ability to understand the real situation of bond issuers, and need the credit rating results of credit rating agencies to help them grasp the necessary information for them to make investment decisions.

Credit risk is the default risk of the issuer, and there is a significant negative correlation between the credit rating and the size of the credit risk, that is, the default rate. In general, the probability of default in a one-year period is zero for gadolinium-rated bonds, which are the highest credit ratings, while the default rate for B-rated bonds is as high as 4 5. As a result, bonds with a credit rating above BBB are considered investment grade bonds, while bonds below BBB are regarded as speculative bonds (also known as junk bonds).

Hello dear, the credit rating of bonds is the rating of the bonds issued by certain authoritative institutions after a comprehensive investigation of the financial status and operating conditions of the bond issuers. It can be used as an important indicator for investors to measure the risk of bond investment and the basis for bond management institutions to manage bonds. Bond credit ratings are usually divided into nine levels:

"AAA" is the highest level, which means that the safety level is the highest and the risk is the least; The "AA" rating indicates that the degree of safety is quite high, the pure risk of damage is small, and the repayment of principal and interest can be guaranteed; A "A" rating indicates that the level of safety is above average, and there is a certain ability to guarantee the repayment of principal and interest. The "BBB" level indicates that the safety level is at the average level, and the condition is relatively safe, but from a slightly longer period of time, some protective factors are lacking; A "BB" rating indicates that there may be some adverse factors affecting debt service in the future; A "B" rating indicates that the profitability is extremely low and the future security is not guaranteed; A "CCC" rating indicates that there is too much debt and there is a risk that it will not meet its repayment obligations; A "CC" rating indicates a high degree of speculation, often with no or late interest payments; A "C" rating is the lowest, indicating that the future is hopeless and that it is not possible to repay the debt at all. In the bond issuance market, only bonds rated in the top four grades are allowed to be issued.

The bond rating standards of rating agencies can be divided into AAA, AA, A, BBB, BB, B, CCC, C and D from high to low. The first four grades of bonds have high creditworthiness and low risk, and are "investment grade bonds"; Bonds starting from Level 5 are "speculative-grade bonds" with low creditworthiness.

Bond credit rating is mostly corporate bond credit rating, which is to evaluate the reliability of a specific bond issued by an enterprise with independent legal personality to repay principal and interest on time, and indicate the credit degree of the grade. This kind of credit rating is to provide information services for investors to purchase bonds and the circulation and transfer activities of **market bonds.

The common long-term ratings of debts and entities from good to bad are AAA, AA+, AAA, AA-, and A+. AAA is known as a high rating and has good liquidity, AA+ is a medium rating, and the rest are low rated and has poor liquidity. Bonds below AA- are uncommon.

At present, the most authoritative credit rating agencies recognized in the world mainly include Standard & Poor's and Moody's Investment Services. The above two companies are responsible for rating a wide range of bonds, including local ** bonds, corporate bonds, foreign bonds, etc., because they have detailed information, the use of advanced scientific analysis technology, and have rich practical experience and a large number of specialized personnel, so their credit ratings are highly authoritative. Standard & Poor's credit rating criteria can be divided into the following from high to low:

AAA, AA, A, BBB, BBB, B, CCC, CC, C, D, From high to low, the credit rating standards of Moody's Investment Services can be divided into: AAA, AA, A, BAA, BA, B, CAA, CA, and C.

The credit ratings of the two institutions are similar. The first four grades of bonds have high creditworthiness and low risk, and are "investment grade bonds"; Bonds starting from Level 5 are "speculative-grade bonds" with low creditworthiness.

The answer to the real-name opposition to small gang investment, the debt rating of short-term financing is relatively special, but it is not A-1.

According to the evaluation system, it can be divided into A-1+, A-1, A-2, A-3, B, C and D grades.

Generally, the credit rating of bonds will be based on indicators such as investment value and solvency of bonds, and the credit rating standards can be divided into AAA, AA, A, BAA, BA, B, CAA, CA and C from high to low. The first four grades of bonds have high creditworthiness and low default risk, yes"Investment-grade bonds", the fifth level of the beginning of the bond creditworthiness, is"Speculative-grade bonds"。

Bond credit ratings are classified as follows:

There are 3 levels of bond ratings. And there are 9 levels below 3 levels. AAA to BBB are investment grade.

Investment-grade bond investment is relatively safe and less risky, and many financial institutions, including commercial banks, ** public high-quality companies, insurance public pei town divisions, etc., are restricted to only hold investment-grade bonds. Bond credit rating is mostly corporate bond credit rating, which evaluates the reliability of the regular repayment of principal and interest of specific bonds issued by enterprises with independent legal personality, and indicates its credit rating.

There are several grades of bond ratings as follows:

Below BB are speculative: Speculative-grade bonds are risky despite their high yields, and bond issuers have the possibility of not being able to repay their debts at maturity.

Since 1982, in order to more accurately measure the credit rating of bond issuers and meet the different needs of fundraisers and investors in the market, Moody's in the United States has added numbers after the five grades from AA to B to indicate various levels. Such as aal, aa2, aa3, etc. Obviously, the higher the credit rating of AA1 is higher than that of AA2, the lower the investment risk is indicated.

Bond credit rating is mostly corporate bond credit rating, which evaluates the reliability of the regular repayment of principal and interest of specific bonds issued by enterprises with independent legal personality, and indicates its credit rating. This credit rating provides information services for investors to purchase bonds and the circulation and transfer of bonds in the ** market.

Bond ratings are divided into AAA, AA, A, BBB, BB, B, CCC, CC, C In addition, it is also commonly used to fine-tune the symbol "Fenqin", which represents slightly higher or lower than the original grade. AAA generally represents strong repayment ability and low risk of default, while C grade represents the exact opposite.

Bond Rating Classification.

AAA rating: not affected by the market economy environment, strong solvency, basically no default risk;

AA rating: has little impact on the market economy environment, strong debt repayment ability, and low risk tolerance;

Grade A: In the event of a recession, the economic environment is easy to laugh and be affected, with strong debt repayment ability and low default risk;

BBB Rating: The economic downturn will be greatly affected, the ability to repay debts is average, and the ability to bear risks is general;

BB level: It is more affected by the economic environment of bad pre-play and has a higher risk;

Grade B: The ability to repay debts depends on a favorable economic environment and takes on high risks;

CCC rating: The ability to repay debt is very dependent on the general economic environment, and the risk of default is high;

CC rating: When bankruptcy or restructuring is declared, the protection is relatively small, and there is basically no ability to repay debts;

Grade C: Basically in a state where you are unable to repay your debts.