Standard & Poor’s Bond Rating

AAA – bonds of highest quality. AA – high-quality debt obligations. A – Bonds that have a strong capacity to pay interest and principal but may be susceptible to adverse effects. BBB – bonds that have an adequate capacity to pay interest and principal, but are more vulnerable to adverse economic conditions or changing circumstances. BB, B, CCC – primary speculative bonds with great uncertainties and major risk if exposed to adverse conditions. C – income bonds on which no interest is being paid. D – bond is in default.