Rating is an score given to bonds that represents safety. Rating ranges go from AAA to D. It represents the ability of a company to repay it’s debts. An AAA rating is the best, while D is the worst. Think of this as a credit rating. A company with a better rating, gets a better rate. This is the same as an individual. For example, an individual with a 800 credit score will pay a lower interest rate than an individual with a 650 credit score.
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