What S&P ratings mean?

What S&P ratings mean?

Standard & Poor’s (S&P) is a leading index provider and data source of independent credit ratings. Standard & Poor’s is one of the largest credit rating agencies, assigning letter grades to companies and countries and the debt they issue on a scale of AAA to D, indicating their degree of investment risk.

What does BB S&P rating mean?

significant speculative characteristics
For S&P, an issue rated BB is regarded as having “significant speculative characteristics” and “while such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.”

What is Moodys rating Scale?

In Moody’s Investors Service’s ratings system, securities are assigned a rating from Aaa to C, with Aaa being the highest quality and C the lowest quality. Moody’s was founded by John Moody in 1909 to produce manuals of statistics related to stocks and bonds and bond ratings.

How do you read Fitch Ratings?

Fitch’s credit rating scale for issuers and issues is expressed using the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade) with an additional +/- for AA through CCC levels indicating relative differences of probability of default or recovery for issues.

What does Dow Jones stand for?

Dow Jones Industrial Average
The Dow Jones Industrial Average, or the Dow for short, is one way of measuring the stock market’s overall direction. It includes the prices of 30 of the most actively traded stocks. When the Dow goes up, it is considered bullish, and most stocks usually do well.

Is BB lower than BBB?

“AAA” and “AA” (high credit quality) and “A” and “BBB” (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations (“BB,” “B,” “CCC,” etc.) are considered low credit quality, and are commonly referred to as “junk bonds.”

Is a Ba3 rating good?

Bonds with a rating of BBB- (on the Standard & Poor’s and Fitch scale) or Baa3 (on Moody’s) or better are considered “investment-grade.” Bonds with lower ratings are considered “speculative” and often referred to as “high-yield” or “junk” bonds.

What does Moody’s Ba1 rating mean?

Issue: For Moody’s, an issue rated Ba1 is judged to be speculative and [is] subject to substantial credit risk. The modifier ‘1’ indicates that the obligation ranks in the higher end of its generic rating category.

What is a B1 rating from Moody’s?

B1/B+ is a non-investment grade credit rating used by Moody’s, S&P, and Fitch for an issued debt instrument (generally a bond) or the issuer of the credit (i.e., company or business). B1/B+ are the highest quality speculative rating, followed Ba2/BB and Ba3/BB+.

What does Fitch A+ rating mean?

A+ A. A- Expectations of low default risk. The capacity for payment of financial commitments is considered strong.

What does Fitch B rating mean?

default risk
BB: elevated vulnerability to default risk, more susceptible to adverse shifts in business or economic conditions; still financially flexible. B: degrading financial situation; highly speculative. CCC: a real possibility of default. CC: default is a strong probability.

Why is it called NASDAQ?

Nasdaq was initially an acronym, NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations. It opened on Feb. 8, 1971, providing automated information about stock prices that investors could use to trade stocks on other exchanges.