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David Asher, CPA, PFS
   

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The newsletter articles on this page provide valuable information on timely and interesting financial issues across a variety of subject areas, including retirement, investments, personal finance, annuities, insurance, taxes, college, and government benefits.


Four Ways to Double the Power of Your Tax Refund
Converting Retirement Savings to Retirement Income
Spring Cleaning Your Finances
What are bond ratings?
What bond ratings do agencies use?


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What bond ratings do agencies use?

Bond rating agencies typically use similar scales, and it may be helpful to understand how to compare ratings from multiple agencies.

This chart compares bond ratings in descending order of creditworthiness (from left to right) as judged by the three best-known credit agencies.

Standard & Poor's and Fitch Ratings use the symbols + and – to denote the upper and lower ranges of ratings from AA to CCC; Moody's uses the numbers 1, 2, 3 to denote the upper, middle, and lower ranges from Aa to Caa.

Investment Grade Non-Investment Grade
Standard & Poor's AAA AA A BBB BB B CCC CC/C/D
Moody's Investors Service Aaa Aa A Baa Ba B Caa Ca/C
Fitch Ratings AAA AA A BBB BB B CCC RD/D

Note: If a bond is insured (typically for lower-rated bonds), there will be two ratings, one for the bond issuer and one for the insurer. Bond insurance adds a potential layer of protection in the event that an issuer defaults, but it is only as good as the insurer's credit quality and ability to pay. An investor should not buy bonds based solely on the insurance.

 
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CPA License Number: 613

Securities and Investment Advisory Services offered through Kestra Advisor Services, (Kestra AS), member FINRA/SIPC. Asher Financial Services is a member of Fusion Advisor Network, a platform of Kestra AS.  Asher Financial Services and Kestra AS are not affiliated. Kestra AS does not offer tax or legal advice and is not a Certified Public Accounting Firm.

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