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AAA, AA, A ratings(F) Standard& Poor's and Moody's are two of the prominent firms that rate bonds for investors. These ratings refer to the financial stability of the bond issuer. The two rating systems are similar; for example, an AAA from Standard & Poor's is equibalent to Aaa from Moody's. The city's AAA rating from Standard & Poor's made its bonds an attractive investment. Rating the Bonds Highest quality or investment grade: AAA or Aaa Best quality AA or Aa High quality A High-medium quality BBB or Baa Medium quality Lower quality, high yield, or junk bonds: BB or Ba Moderate, but not well-guarded B Risk of future problems CCC or Caa Poor quality CC or Ca Often in default C Lowest rated, poor prospects D In default pp. 1 |