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For Fitch, a bond is considered investment grade if its credit rating is BBB− or higher. Bonds rated BB+ and below are considered to be speculative grade, sometimes also referred to as "junk" bonds. [103] Fitch Ratings typically does not assign outlooks to sovereign ratings below B− (CCC and lower) or modifiers.
A sovereign credit rating is the credit rating of a sovereign entity, such as a national government. The sovereign credit rating indicates the risk level of the investing environment of a country and is used by investors when looking to invest in particular jurisdictions, and also takes into account political risk.
The credit rating is a financial indicator to potential investors of debt securities such as bonds.These are assigned by credit rating agencies such as Moody's, Standard & Poor's, and Fitch, which publish code designations (such as AAA, B, CC) to express their assessment of the risk quality of a bond.
The 2011 S&P downgrade was the first time the US federal government was given a rating below AAA. S&P had announced a negative outlook on the AAA rating in April 2011. The downgrade to AA+ occurred four days after the 112th United States Congress voted to raise the debt ceiling of the federal government by means of the Budget Control Act of 2011 on August 2, 2011.
Overall, the existence of sovereign credit rating agencies has significantly contributed to the transparency and efficiency of the international financial system, providing stakeholders with vital information to make informed decisions and manage risks associated with sovereign debt. [citation needed]
A potential debt ceiling standoff in the United States next year could be one of the worst since the 2011 crisis, which may trigger another sovereign credit rating downgrade, said Gennadiy ...
Whoever is to blame, mounting debt and political brinksmanship have already taken their toll on America’s credit rating. Fitch cut its rating on US sovereign debt to AA+ from AAA last August; in ...
Even after Fitch Ratings agency this week lowered the US sovereign debt rating to AA+ from its top score of AAA, experts expect the move will have "no material impact on Treasury yields."