What is a BBB credit rating?

A lower-medium-grade credit rating given to a prospective borrower. Sometimes known as a BAA2 rating (given by S&P), a BBB score from Moody's, suggests a company or government has an adequate but not overly strong ability to meet all its financial commitments. Compared to those with higher ratings, companies with a BBB score are more vulnerable to adverse economic conditions.

Where have you heard about BBB credit ratings?

Credit ratings highlight the level of risk associated with a particular investment. Although not a strong rating, BBB is still generally classed as being investment grade and means companies shouldn't have too much trouble attracting investors or lenders. You might have heard your financial adviser reference a company's credit rating when discussing investment opportunities.

What you need to know about BBB credit ratings.

The credit rating given to a company or government can impact on its ability to borrow money. Medium-grade credit ratings, like BBB, are deemed investment-worthy. And that means it should be fairly straightforward to find investors willing to lend cash.

While it's one of the weaker investment-grade credit ratings, a BBB score can still offer reassurance to investors that their money is likely to be fairly secure.