2. What is the significance of bond credit rating? What grades can bonds be classified into?

Significance: Bond credit rating is the credit risk rating of bond issuing enterprises, and the rating directly reflects the default risk level of bonds issued by enterprises. And the rating report is an intuitive way for investors to understand the investment risks of bonds in this period, and the rating results have a certain impact on the issuance and pricing of bonds.

If the debt rating of this bond is AA or above, this bond can be listed and traded on the exchange, which can increase the liquidity of this bond, achieve the purpose of making more investors more recognized, and thus reduce the issuance cost.

Grade:

Standard & Poor's credit rating standards are divided into AAA, AA, A, BBB, BB, B, CCC, CC, C and D from high to low.

Moody's investment service company's credit rating standards are divided into aaa, Aa, A, Ba, BA, B, Ca, CA and C from high to low.

The credit ratings of these two institutions are similar. The first four bonds are "investment-grade bonds" with high credibility and low risk; The bonds at the beginning of the fifth level have a low reputation and are "speculative bonds".