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Bonds & CDs

Ratings

The chart below describes common note/bond ratings and includes a general description of each1. For precise ratings descriptions, visit the respective ratings agency websites2.

Rating Description

Rating by Rating Organization

INVESTMENT GRADE

Highest credit quality with minimal risk of default. Extremely strong capacity to meet financial commitments.

S&P: AAA
Moody's: Aaa

Superior to very high credit quality and very low risk of default. Very strong capacity to meet financial commitments.

S&P: AA
Moody's: Aa

High to upper-medium credit quality with some risk factors that could contribute to default. Bonds in this category are still considered to be in little danger of default risk.

S&P, Moody’s: A

Adequate to medium credit quality, with acceptable levels of risk. Could be susceptible to default risk in the long term, or there may be other adverse conditions present which reduce credit quality.

S&P: BBB
Moody's: Baa

NON-INVESTMENT GRADE

Questionable to speculative financial security, with additional factors that may contribute to default, such as ability to meet debt obligations, especially during periods of economic recession.

S&P: BB
Moody's: Ba

Speculative to highly speculative financial security, with low expectation that issuer will meet debt obligations.

S&P, Moody’s: B

Very highly speculative with high risk of default.

S&P: CCC
Moody's: Caa

Very highly speculative with danger of default, or default probable, or may have recently occurred.

S&P: CC
Moody's: Ca

Very highly speculative, often accompanied by bankruptcy petitions; default imminent or has recently occurred.

S&P, Moody's: C+, C, C–

Default and/or in arrears, meaning a portion of a serial bond remains unpaid at maturity. Issuer has not met scheduled payment of interest or principal or made clear it will miss such payments.

S&P: D
Moody's: No Rating

1. The specific ratings are copyrighted by the individual rating agencies and may not be used or reprinted without a license and/or written permission.
2. Specific ratings are subject to change without notice by the respective ratings agency.

Data as of September 15, 2011

Please consult your financial advisor and relevant offering documents prior to investing any money in these or other products, and for information and additional risks associated with High Yield Corporate Notes, including but not limited to, call risk, principal risk, credit risk and interest rate risk. These products are offered through many but not all broker-dealers. 

This information does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of those securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.  Product suitability must be determined for each individual investor.