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AAA
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The highest rating given on bonds by Bond rating agencies.
AAA bonds are supposed to have virtually no Risk of Default. Moody's and Standard & Poor's are the most widely used rating agencies. A Credit Rating assesses the credit worthiness of an individual, Corporation, or even a country. Credit ratings are calculated from financial history and current assets and liabilities. Typically, a Credit Rating informs a lender or investor the probability of the subject being able to pay back a loan. However, in recent years, credit ratings have also been used to adjust insurance premiums, determine employment eligibility, and establish the amount of a utility or leasing Deposit.
A poor Credit Rating indicates a High Risk of defaulting on a loan, and thus leads to High Interest rates, or the refusal of a loan by the creditor.
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Euromoney Institutional Investor PLC
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