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Credit Ratings
A bond issuer?s ability to pay its debts that is, make all interest and
principal payments in full and on schedule is a critical concern for
investors. Most corporate bonds are evaluated for credit quality by Standard
& Poor?s, Moody?s Investors Service and Fitch Ratings. Checking a bond?s
rating before buying is not only smart but also simple: Just ask your
Financial Consultant.
Bonds rated BBB or higher by Standard & Poor?s and Fitch Ratings, and Baa or
higher by Moody?s, are widely considered ?investment grade.? This means the
quality of the securities is high enough for a prudent investor to purchase
them.
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