Debt Rating Definition

A company or country’s debt rating is an assessment of how they are able to pay back their debts, as well as any interest that is accrued on said debts.

Ratings are conducted by companies such as Moody’s, Standard & Poor’s and Fitch ratings, with each having unique codes to describe the same primary levels of debt a company, country or organization can have.

Higher Debt Ratings show less risk for investors, while lower rated companies are less creditworthy, and therefore riskier investments.