The lowering of a Rating by a Rating Agency. Lower Ratings indicate lower credit quality.
A judgment by a rating agency as to the credit quality of a bond.
In Contrast To
The increasing of a rating by a rating agency. Higher ratings indicate higher credit quality.
Start with the Bond Basics
Hundreds of Terms and Concepts
A commercial bank or trust company with trust powers which acts in a fiduciary capacity for and on behalf of the bondholders by entering into an indenture with the issuer of the bonds.