A judgment by a Rating Agency as to the credit quality of a Bond.  Ratings are intended to give investors an indication as to the likelihood that the Principal of, and Interest on, the Bonds will be repaid.  Ratings are typically issued before the Closing but are updated periodically during the term of the Bonds if the credit quality of the Bonds changes.  Each Rating Agency has its own notation as to credit quality.

See Also

Rating Agency

A national credit agency providing an independent appraisal of the credit quality of the Issuer, the conduit borrower, if any, and/or the bond issue.

Downgrade (Ratings)

The lowering of a rating by a Rrting agency. Lower ratings indicate lower credit quality.

Upgrade (Ratings)

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

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Fixed Interest Rate

An interest rate which is set at the time a bond is issued and which does not vary during the term of the bond.