What are Bond Ratings?Bond ratings are representations of the creditworthiness of corporate orgovernment bonds. The ratings are published bycredit rating agenciesand provide evaluations of a bond issuer’s financial strength and capacity to repay the bond’s principal and interest according to the contract.The higher the rating the less likely an issuer will default.2
Three Chief Independent Ratings Agencies:1. Standard & Poor's Corporation1860 - Henry Varnum Poor began supplying European investors with financial information on their holdings in the developing infrastructure of America. 3
Three Chief Independent Ratings Agencies:2. Moody’s Investor Services1909 – John Moody published a book of Railroad Investments that included concise analysis of their relative investment quality.4
Three Chief Independent Ratings Agencies:3. Fitch Ratings1913 – John Knowles Finch published “Fitch Bond Back” and other books on financial markets. Fitch is credited with introducing the AAA through D rating system now used.