Standard & Poor's Ratings

Popular Terms
Classification of the US securities on the basis of the investment risk involved. (1) Corporate and municipal bonds are rated 'AAA,' 'AA,' 'A', and 'BBB' (together called investment grade) that indicates the issuer is expected to pay both interest and principal on time. (2) Commercial paper is rated as 'A1,' 'A2,' and 'A3.' (3) Certificates of deposit (CDs) are rated from 'AAA' to 'CCC' (for CDs for over one year) and 'A' to 'D' (for CDs for less than one year). (4) Common stock (ordinary shares) is rated from 'A+' to 'C' on the basis of the issuer's growth and stability (a rating of 'D' means the firm is being reorganized after a bankruptcy).

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