DEFINITION of 'B1/B+'

Usually the lowest investment grade rating assigned to a security or insurance carrier. This rating signifies that the issuer or carrier is relatively stable with a moderate chance of default. Investors and policyholders of the rated entity are taking a low to medium risk.

BREAKING DOWN 'B1/B+'

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.

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RELATED FAQS
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  2. Does a good credit rating guarantee repayment?

    Learn how credit ratings help investors determine the creditworthiness of an issuer and the risk associated with making an ... Read Answer >>
  3. How important is credit rating on a fixed income security?

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  4. Which securities are considered investment grade?

    Learn which securities are considered investment grade by credit rating agencies such as Standard & Poors and Moody's and ... Read Answer >>
  5. In the beginning of this year, the total par value of all CCC-rated bonds were $12 ...

    The correct answer is: d) (i) Default Loss Rate = [($1.3 billion - $625 million)/$1.3 billion] = 51.9% (ii) Dollar Default ... Read Answer >>
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