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Bond credit rating is used to assess the credit worthiness of a corporation or government's debt issues. A bond credit rating is similar to a credit rating that an individual person receives.

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Q: What does the bond credit rating assess?
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What is the definition of the term investment grade?

Investment grade is when a bond credit rating accesses the credit worthiness of a corporation's debt issues. A bond is considered investment grade if the credit rating is BBB- or higher.


What is the difference between credit score and credit rating?

The difference between credit score and credit rating is simple Credit score (or credit history) is the history of paying back debt where as credit rating the the reputation for paying back money owing


WhyImporanrtance of credit management in finanacial management?

For governments, corporations and education institutions credit management is essential. By following good credit management practices you can maintain a strong, high bond rating which is like a credit score. Just like a credit score ia bond rating affects your ability to borrow money and the terms of that borrowing like the interest rate you will have to pay and any fees.


Details about credit rating?

A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by credit rating agency of the debt issuers likelihood of default Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations.


What is an AAA bond rating?

AAA indicates it is of the highest credit quality. This means it has an extremely high change of repaying.

Related questions

What is the definition of the term investment grade?

Investment grade is when a bond credit rating accesses the credit worthiness of a corporation's debt issues. A bond is considered investment grade if the credit rating is BBB- or higher.


What is the difference between credit score and credit rating?

The difference between credit score and credit rating is simple Credit score (or credit history) is the history of paying back debt where as credit rating the the reputation for paying back money owing


What is the XYZ corporate bond rating?

I think you asking for help with credit ratings. Here is a guide http://investment-income.net/bond-credit-rating.html


What is the xyz corporation rating?

I think you asking for help with credit ratings. Here is a guide http://investment-income.net/bond-credit-rating.html


Where can one obtain an accurate credit rating scale?

A credit rating scale can be obtained from Equifax, Experian, or Call Credit in the UK via post or online. Oneself must assess the accuracy of the report as to whether this is so. Errors are on occasion made by creditors whilst updating reports.


WhyImporanrtance of credit management in finanacial management?

For governments, corporations and education institutions credit management is essential. By following good credit management practices you can maintain a strong, high bond rating which is like a credit score. Just like a credit score ia bond rating affects your ability to borrow money and the terms of that borrowing like the interest rate you will have to pay and any fees.


Details about credit rating?

A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by credit rating agency of the debt issuers likelihood of default Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations.


What is an AAA bond rating?

AAA indicates it is of the highest credit quality. This means it has an extremely high change of repaying.


What are bond ratings?

Bond ratings are grades with are given to bonds indicating their credit quality. They are mostly provided by private independend rating services such as Standard & Poor's, Moody's and Fitch.


What is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date?

This is a bond. A bond is distinguished by 4 main factors. First, the interest rate of the bond. Secondly, the term of the bond. Thirdly, how the bond is repaid, whether it is all at once at maturation or if yearly installments of interest are paid (coupons). Lastly, the risk factor of the bond is used to sort bonds by credit rating companies from AAA rating (the highest) to junk bond rating.


How does corporate bond ratings work?

The leading rating agencies give a rating when a bond is first issued, and that rating determines how high the interest rate on that bond is. A higher rating means the bond will have a lower interest rate.


Should I get involved in corporate bond investing?

Corporate bond investing is a great way to diversify your portfolio since you already have some Muni Bonds. Before you consider a corporate bond, you should check the credit rating on the bond first.