A rating given by a credit rating agency that evaluates the quality and safety of a specific debt issue, bank loan, or borrower.

The ratings are based on an examination of the issuer's financial strength and the likelihood that it will be able to make scheduled repayments. Rating scales vary; a popular scale uses (in order of increasing risk) ratings of AAA, AA, A, BBB, BB, B, CCC, CC, C, with the additional rating D for debt already in arrears. Bonds receiving grades of BB or below are not considered investment grade because of the relative potential for issuer default.

For further information on credit ratings, see Practice Note, Credit Ratings and Credit Rating Agencies.