The ratigs used according to danger. The ratings are AAA, AA, A, Better Business Bureau, BB, B, CCC, CC, C, DDD, DD, and D. The AAA is the best while the D is even worse rankings. Everything below a-b is speculative and called a junk relationship. They're going to likely default and spend greater insurance.
Bonds tend to be ranked on the basis of the degree of danger connected with prompt repayment of the interest and principle. Relationship rating agencies (eg Standard & Poor's) use a grading system below (1) AAA: best quality (called 'gilt edged'). (2) AA: top quality. (3) A: upper method class. (4) Better Business Bureau: method quality. (5) BB: has actually speculative elements. (6) B: speculative. (7) CCC: speculative with potential for standard. (8) CC: many speculative. (9) C: most affordable gradable quality. (10) DDD: in standard with likelihood of data recovery. (11) DD: in default and arrears. (12) D: in standard, with little or no price. Bonds ranked 'BBB' or higher are believed investment class suited to finance institutions with fiduciary duties. Bonds ranked below 'B' are thought speculative class consequently they are called large yield or junk bonds which, because of higher probability of their particular default, need to pay greater interest rates to attract people.