CCC− (credit rating)
What is a CCC- credit rating?
A credit rating given by Moody's to a prospective borrower that's not of investment grade and implies a substantial degree of risk. Sometimes known as a CAA3 rating by S&P, it suggests a company or government is highly vulnerable to adverse economic conditions, and could default on its debts at short notice.
The rating is applied to the bonds issued by an organisation. Since there might be an imminent threat of default, bonds with a CCC- score are deemed extremely speculative investments.
Where have you heard about CCC- credit ratings?
CCC- is one of the lowest credit ratings a company can be given by an agency. It's nine notches down from BBB-, the rating required to achieve investment-grade status. CCC- bonds are often called junk bonds, since their risky nature makes them less popular among general investors.
What you need to know about CCC- credit ratings.
The credit rating given to a company or government can impact on its ability to borrow money. Ratings with substantial risk attached to them, like CCC-, don't generally appeal to investors compared to investment-grade ones. Such ratings are given to entities which may find it tough to cover all their debt commitments if financial or economic conditions change.
To make themselves more appealing to investors, bonds with a CCC- rating frequently offer higher returns than investment-grade bonds. This compensates investors for the larger degree of uncertainty they'll face.
Find out more about CCC- credit ratings.
A CCC- rating is among the lowest which can be given to a company. It implies a high level of credit risk.