How to Get a Rating for Bonds

Investors worldwide trust on Moody ’ randomness, Standard & Poor ’ mho and Fitch for unbiased bond ratings. All three services are certified by the U.S. Securities and Exchange Commission as Nationally Recognized Statistical Rating Organizations. These agencies post corporate, municipal, government and alien bond citation ratings on their websites, and investors can use this data to research a detail adhere ’ mho creditworthiness for rid.

Step

1 Open your on-line deal report and go to your adhere screener. If you don ’ thymine have an on-line history, Yahoo ! Finance has a release on-line attachment screener you can use. Enter the maturity prison term skeletal system, credit timbre and call feature in your search window. callable bonds can be called in by the caller at any time. That could result in a loss, so choice non-callable bonds to avoid this possibility. Run the search, review the bond list, and conduct any far research you feel is needed.

Step

2 Obtain a copy of the chemical bond ’ s on-line course catalog, or contact the company and request one be mailed to you. If you have a trade report, your broke can obtain a copy for you. Review the course catalog and locate the CUSIP count, which is normally printed on the course catalog ’ first or second page. You can find the bail ‘s credit rat using this singular identification number, which is issued under the Committee on Uniform Securities Identification Procedures organization.

Step

3 Select one of the on-line bond evaluation services and go to its web site. Enter the CUSIP number in the search box, then click on the research button to go to the adhesiveness ’ second information page. Find the bind ’ randomness credit military rank and look for any credit denounce changes. Review the coupon ( sake rate ), maturity date, the shackle ’ sulfur rat and the date it was rated. Make notes of this information before running a credit check using a unlike evaluation avail.

Step

4 Compare the bond ’ second credit ratings from two companies to see whether they assigned exchangeable ratings. From highest to lowest, Fitch ’ s bond ratings are A++, A+, A, A-, B++, B+, B, B-, C++, C+, C, C-, D, E, F and S. Fitch besides uses a long-run and short-run evaluation scale. S & P bond ratings are AAA, AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB-, BB+, BB, BB-, B+, B, B-, CCC+, CCC, CCC-, CC, C and D. Moody ‘s rat system uses a combination of letters and numbers : Aaa, Aa1, Aa2, Aa3, A1, A2, A3, Baa1, Baa2, Baa3, Ba1, Ba2, Ba3, B1, B2, B3, Caa1, Caa2, Caa3, C and C.

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Category : Finance

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