BBB
E484911
BBB is an investment-grade credit rating that denotes moderate credit risk and adequate capacity to meet financial commitments, though more susceptible to adverse economic conditions.
Statements (37)
| Predicate | Object |
|---|---|
| instanceOf |
credit rating
ⓘ
investment-grade rating ⓘ |
| associatedWith |
greater sensitivity to business and economic downturns
ⓘ
increased refinancing risk in stressed conditions ⓘ |
| comparedWithHigherRatings | offers higher yields than A or AA ratings ⓘ |
| comparedWithLowerRatings | offers lower yields than BB or B ratings ⓘ |
| creditQualityTier | lowest investment-grade tier ⓘ |
| creditworthinessAssessment | adequate but not strong ⓘ |
| denotesCapacityToMeetFinancialCommitments | adequate capacity ⓘ |
| denotesCreditRisk | moderate credit risk ⓘ |
| higherThan |
BB+
ⓘ
speculative-grade ratings ⓘ |
| impliesDefaultRisk | low to moderate default risk ⓘ |
| impliesProbabilityOfDefault | higher than A-rated but lower than BB-rated entities ⓘ |
| linkedToCovenantTightness | may require somewhat tighter covenants than higher ratings ⓘ |
| linkedToFundingCosts | moderate funding costs in capital markets ⓘ |
| lowerThan |
A-
ⓘ
higher investment-grade ratings ⓘ |
| marketImpactOfDowngrade | downgrade below BBB can trigger forced selling by investment-grade mandates ⓘ |
| ratingScalePosition | borderline between investment-grade and speculative-grade ⓘ |
| regulatoryTreatment | often qualifies as investment-grade for regulatory purposes ⓘ |
| riskPerception | acceptable risk for many conservative investors ⓘ |
| scaleContext | long-term issuer credit ratings ⓘ |
| susceptibilityToEconomicConditions | more susceptible to adverse economic conditions than higher ratings ⓘ |
| timeHorizon | medium to long-term credit risk ⓘ |
| typicalInvestorBase |
institutional investors
ⓘ
investment-grade bond funds ⓘ |
| typicalIssuerProfile |
companies with stable but not robust financial metrics
ⓘ
sovereigns with moderate fiscal and economic strength ⓘ |
| usedBy |
credit rating agencies
ⓘ
fixed-income analysts ⓘ institutional investors ⓘ regulators ⓘ |
| usedFor |
rating corporate bonds
ⓘ
rating financial institutions ⓘ rating sovereign debt ⓘ rating structured finance instruments ⓘ |
Referenced by (1)
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