BB− (credit rating)
What is a BB- credit rating?
A credit rating given by Moody's to a prospective borrower, which is not of investment grade. Sometimes known as a BA3 rating by S&P, it suggests a company or government faces significant financial uncertainties and may be exposed to adverse economic conditions.
Since there's the chance of default, bonds with a BB- rating are deemed speculative investments.
Where have you heard about BB- credit ratings?
BB- is one of the higher ratings to have a non-investment grade status. But bonds issued by companies with a BB- score may still be described as junk bonds, since they tend to be riskier and less popular with investors.
What you need to know about BB- credit ratings.
The credit rating given to a company or government can impact on its ability to borrow money. Those with speculative ratings, like BB-, are deemed higher-risk for investors compared to investment-grade companies. They're given to entities that may have trouble paying their debts, or start-ups with only a limited track record.
Bonds with a BB- rating may offer higher returns than those with investment-grade ratings. This effectively compensates investors for the larger degree of risk they're taking on.
Find out more about BB- credit ratings.
BB- is far from the worst credit rating a company can be given. To learn more, see D (credit rating).