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Bond Ratings - The highest possible debt rating is AAA...

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Chapter 7.3: Bond Ratings The definition of creditworthiness is based on how likely a company is to default and the protectors creditors have if they do default Bond ratings DO NOT address interest rate risk A lot of borrowing takes the form of junk bonds
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Unformatted text preview: The highest possible debt rating is AAA Fallen angels – bonds that drop from investment grade into junk territory NCAA – no coupon at all (very bad for investors)...
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