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.
bond-basics
Rating
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
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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Special Tax Bond
Tax-based revenue bonds that are secured by revenues derived from one or more designated taxes levied for a specific purpose, including income taxes, excise taxes (such as taxes on tobacco, alcoholic beverages, fuel, etc.), special assessments, hotel occupancy taxes, sales taxes and limited ad valorem taxes.