AAA (credit rating)
What is an AAA credit rating?
The highest possible credit rating a prospective borrower can have. An AAA score is awarded by a credit ratings agency and suggests a company or government is highly unlikely to default on its debt repayments.
Where have you heard about AAA credit ratings?
Credit ratings can play an important role in the financial world, highlighting how risky a particular investment is. You may read about a country or business losing its AAA status after experiencing a period of economic turbulence.
What you need to know about AAA credit ratings.
A company or government can find that it's credit rating can impact on it's ability to borrow money. High credit ratings, like AAA, mean it is usually easier to find investors willing to lend to them. However, a low credit rating means it's seen as a greater risk, and it may have to offer investors higher returns.
AAA ratings are highly sought after, since they allow companies to borrow larger sums of money. Because of their attractiveness to investors, bonds with these ratings don't need to offer particularly high yields.
Find out more about AAA credit ratings.
An AAA rating proves a company can meet its financial commitments. For more on this, see credit risk.