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 substantial risk. Sometimes known as a CAA1 rating by S&P, it suggests a company or government is currently vulnerable to adverse economic conditions, and will only meet its financial commitments if conditions remain favourable.
The rating is applied to the bonds issued by an organisation. Since there's a significant chance of default, bonds with a CCC+ score are generally viewed as highly speculative investments.
Where have you heard about CCC+ credit ratings?
CCC+ is one of the lower credit ratings that can be handed to a company. It's a long way down from BBB-, which companies generally require to achieve investment-grade status. Bonds with CCC+ ratings may be referred to as junk bonds, since their riskier nature makes them less popular with 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 a substantial level of risk attached to them, like CCC+, may have less appeal for investors compared to investment-grade ones. They're given to entities that may have trouble paying their debts if things take a turn for the worse.
On a more positive note, bonds with a CCC+ rating frequently offer higher returns than investment-grade bonds. This helps to compensate investors for the larger risks they face.
Find out more about CCC+ credit ratings.
CCC+ ratings are given to companies which have the potential to default on their debts. For more on this, see credit risk.