Speculative grade: Difference between revisions
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''Credit ratings'' | ''Credit ratings'' | ||
A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or Standard and Poor’s. | A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or S&P (Standard and Poor’s). | ||
Speculative grade represents credit ratings which are weaker than investment grade. | Speculative grade represents credit ratings which are weaker than investment grade. | ||
In Fitch and S&P's long term rating scales, speculative grade is BB and lower. | |||
The equivalent in Moody's scale is Ba1 and lower. | |||
Speculative grade is also known as 'sub-investment' grade, 'non-investment' grade, or sometimes 'spec' grade. | |||
== See also == | == See also == | ||
* [[Bond]] | |||
* [[Corporate credit ratings: a quick guide]] | |||
* [[Credit rating]] | * [[Credit rating]] | ||
* [[Investment grade]] | * [[Investment grade]] | ||
* [[Rating agencies]] | * [[Rating agencies]] | ||
* [[Sub-investment grade bond]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 16:18, 29 January 2024
Credit ratings
A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or S&P (Standard and Poor’s).
Speculative grade represents credit ratings which are weaker than investment grade.
In Fitch and S&P's long term rating scales, speculative grade is BB and lower.
The equivalent in Moody's scale is Ba1 and lower.
Speculative grade is also known as 'sub-investment' grade, 'non-investment' grade, or sometimes 'spec' grade.
