Bonds rated Ba3/BB- are generally considered speculative in nature and are not considered to be investment-grade bonds suited for people wishing to avoid the risk of losing their principal. These bonds are commonly referred to as junk bonds, though this rating indicates that they are towards the more stable end of the junk-bond rating spectrum.

Ba3 is a long-term bond rating provided by the Moody's rating service, while BB- is the parallel rating provided by both the S&P and Fitch rating services.

Ba2/BB is the rating that falls directly above Ba3/BB-, while B1/B+ falls directly below.


Bonds rated Ba3/BB- provide a yield-to-maturity or yield-to-call rate that is well above bonds with higher ratings, especially those issued by the U.S. government, municipalities and the largest global corporations. However, it is important for investors to realize that this higher rate serves as compensation for investing money in a company or government that may not be financially sound and may result in the loss of one's investment.

  1. Ba2/BB

    This is the next rating down from the highest non-investment ...
  2. Ba1/BB+

    This is generally one of the lowest investment grade ratings ...
  3. Moody's

    An independent, unaffiliated research company that rates fixed ...
  4. Junk Bond

    A colloquial term for a high-yield or non-investment grade bond. ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has ...
  6. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming ...
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