AAA rating

Definition

A bond rating assigned to an investment grade debt instrument. AAA is the highest possible rating and reflects an opinion that that the issuer has the current capacity to meet its debt obligations and has an extremely low solvency risk from changes in business, financial, or economic conditions.

Bond investors rely on bond ratings from organizations like Standard & Poor's, Moody's Investors Service, and Fitch Ratings to evaluate the default risk associated with both corporate bonds and municipal bonds.


Compare to A Rating; AA Rating; BBB Rating; Junk Bond.

Also known as triple A rating.

Use AAA rating in a sentence

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
B rating BB rating