bond-basics

Downgrade (Ratings)

The lowering of a Rating by a Rating Agency. Lower Ratings indicate lower credit quality.


See Also

Rating

A judgment by a rating agency as to the credit quality of a bond.


In Contrast To

Upgrade (Ratings)

The increasing of a rating by a rating agency.  Higher ratings indicate higher credit quality.

Hudson Yards Rail Yards

Start with the Bond Basics

Credit Enhancement

The use of the credit of an entity having greater financial strength than the issuer or borrower to improve the credit quality of a bond issue.