1.a level:
(1)AAA is the highest level. The solvency is extremely strong and the risk of default is extremely low.
(2)AA level advanced. Strong solvency and low default risk.
(3) Grade A is above average. Strong repayment ability and low default risk.
2. Grade B:
(1)BBB level is medium. The solvency is average and the risk of default is average.
(2)BB level is the middle and lower level. Weak solvency and high default risk.
(3) Class B is speculative. The ability to repay debts depends heavily on the economic environment, and the risk of default is high.
3. level c:
(1)CCC level is completely speculative. The ability to repay debts is extremely dependent on the economic environment, and the risk of default is extremely high.
(2)CC level is the largest speculative level. Debt repayment is basically not guaranteed.
(3) Class C is the lowest level. There is no guarantee of repayment of debts.
The difference between convertible bonds and bond issuance;
1. A convertible bond is a bond that can be converted into the shares of the bond issuing company, which is usually lower in coupon rate. The issuance of bonds refers to the securities issued by the company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time.
2. Issue bonds, repay the principal and interest according to the agreed conditions within a certain period of time, and complete the issuance of bonds; If convertible bonds are converted into stocks, their bond issuance characteristics will be lost and stock characteristics will be formed.
3. General bond issuance refers to the behavior of the issuer to repay the principal and interest of securities to investors within a period of more than one year in accordance with legal procedures. The issuance of convertible corporate bonds refers to the act of issuing bonds that can be converted into shares within a certain period of time according to agreed conditions to investors in accordance with legal procedures.
4. Convertible bond is a kind of bond that can be converted into the stock of the bond issuing company, which is usually lower in coupon rate. Convertible bonds are essentially based on the issuance of bonds, with an option attached, allowing buyers to convert the purchased bonds into shares of designated companies within a specified time range.
5. Bond is a kind of financial contract, which is a debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises borrow money directly from the society to raise funds, and at the same time promises to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.
Convertible bonds, debt+equity financing, can be converted into shares of the company in the future, so the issue rate is low. At present, the annual interest rate is usually 0.8- 1.2%, and the unconverted bonds need to repay the principal and interest at maturity;
Debt issuance and debt financing, ordinary bonds issued by companies can only repay the principal and interest at maturity, and the interest rate is usually higher than that of bank deposits and national debt in the same period.