Definition: Organizations like Standard and Poor's and Moody's rate the riskiness of corporate, municipal, and government issued securities and gives each security a Bond Rating. The bond rating, or more accurately the risk, is based on two elements: the probability the organization will file for bankruptcy before the final bond payment is due and what percentage of the bondholder's clams creditors will receive if a bankruptcy takes place.
Terms related to Bond Ratings:
None
About.Com Resources on Bond Ratings:
Writing a Term Paper? Here are a few starting points for research on Bond Ratings:Books on Bond Ratings:
- Solvency assessment and annual reporting : an empirical study on the informative value of annual reports based on bond rating - Bart Kamp, Tilburg University Press, 1998.
- Corporate bond rating drift : an examination of credit quality rating changes over time - Edward I Altman and Duen Li Kao, The Research Foundation of the Institute of Chartered Financial Analysts, 1991.
- The rating game : report of the Twentieth Century Fund Task Force on Municipal Bond Credit Ratings - John E Petersen, Kraus Reprint Co., 1977.
- A proposed model of industrial bond rating : analysis and comparison - George Moshe Frankfurter and William L Langdon, Management Research Center, School of Management, Syracuse University, 1976.
