What ratings actually measure
Ratings are an opinion on the probability of default, not a guarantee. Treat them as a starting point, not the final word.
AAA and AA are considered high-grade; A is upper-medium; BBB is the lowest investment grade. Anything below BBB- is non-investment grade (sometimes called high yield).
How to read between the labels
Look beyond the label: read the rationale, check the outlook, and understand which agency rated it.
Two agencies can rate the same paper differently — when that happens, the divergence itself is worth understanding.
