What are the Bond Rating Categories?
Each of the rating companies has a rating scale which reflects the degree of risk associated with a bond. High-end ratings reflect the lowest-risk issues; typically these bonds can be issued at lower interest rates. The Moody’s scale ranges from “AAA” on the high end to “C” on the low end with seven intermediate categories. Standard and Poor’s index ranges from “AAA” to “D” with eight intermediate categories.
