Bond Rating (Noun)
Meaning
An evaluation by a rating company of the probability that a particular bond issue will default; "the bonds of highest quality are said to have bond ratings of AAA".
Classification
Nouns denoting cognitive processes and contents.
Examples
- The company's bond rating was lowered due to its recent financial struggles and decreased investor confidence.
- A high bond rating allows companies to borrow money at a lower interest rate, which in turn can improve profitability.
- The company's upgrade in bond rating to A+ from A- allowed it to refinance its debt and improve cash flow.
- Analysts reviewed the financial statements to assign a bond rating to the company's new bond issue.
- Investors typically look for bonds with a high bond rating to ensure a lower risk of default.