What is the bond rating?

The bond rating standards of rating agencies can be divided into AAA, AA, A, BBB, BB, B, CCC, CC, C and D from high to low. The first four bonds are "investment-grade bonds" with high reputation and low risk; Bonds starting from the fifth level have a low reputation and are "speculative bonds". Bond credit rating is mostly corporate bond credit rating. The reliability of repayment of principal and interest on schedule for specific bonds issued by enterprises with independent legal personality is evaluated and its credit rating is indicated. This credit rating provides information services for investors to buy bonds and the circulation and transfer of bonds in the securities market. Extended information: The main reason for bond credit rating is to facilitate investors to make bond investment decisions. Investors have to take certain risks when buying bonds. If the issuer fails to repay the principal and interest at maturity, investors will suffer losses, which is called credit risk. The credit risk of bonds varies with the repayment ability after issuance. For investors, especially small and medium investors, it is very important to know the credit rating of bonds in advance. Due to the limitation of time, knowledge and information, it is impossible to analyze and select many bonds. Therefore, it is necessary for professional institutions to objectively, fairly and authoritatively evaluate the debt repayment reliability of the bonds to be issued, that is, to carry out bond credit rating, so as to facilitate investors' decision-making.