AA+/Aa1
Definition of 'AA+/Aa1'The highest rating that some ratings agencies assign to a security or insurance carrier. This rating signifies that there is little to no risk of default and is often assigned to securities that have AMBAC or another type of insurance backing. Investors or policyholders can rest assured that their money is secure with this rating. |
|
Investopedia explains 'AA+/Aa1'The ratings assigned by the various ratings agencies are based primarily upon the insurer's or issuer's creditworthiness. This rating can therefore be interpreted as a direct measure of the probability of default. However, credit stability and priority of payment are also factored into the rating. |
Related Definitions
Articles Of Interest
-
When To Trust Bond Rating Agencies
Despite investor distrust, rating agencies can be helpful. Just be sure you use these ratings as a starting point. -
The Debt Ratings Debate
Lack of competition and potential conflicts of interest have called the value of these ratings into question. -
Why Bad Bonds Get Good Ratings
Credit ratings are not the only tool to rely on when assessing bonds. Find out why they sometimes fall short. -
What You Need To Know About Financial Analysts
Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for. -
Analyst Recommendations: Do Sell Ratings Exist?
Analyst reports can be an investor's best friend - but without knowing how to read them, you won't be able to fully utilize them. -
A Brief History Of Credit Rating Agencies
Credit rating agencies have a long history in this country. Learn about what they do and how were they developed. -
Stock Ratings: The Good, The Bad And The Ugly
Stock ratings are both loved and reviled. Find out why they deserve equal measures of both. -
Mutual Fund Ratings: Are They Deceiving?
Rating systems are a helpful - but not perfect - tool to help you find a winning fund. -
Sizing Up A Career As A Ratings Analyst
This competitive field is lucrative, but do you have what it takes to score this job? -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being.
Free Annual Reports