Credit Rating
a.k.a. Sovereign rating
A grade, such as AAA or BB, showing how likely a government or company is to repay its debts.
In plain English
A grade, such as AAA or BB, showing how likely a government or company is to repay its debts.
A credit rating is a report card for borrowers. Top grades like AAA mean very low risk of default; grades below BBB− (or Baa3) are 'junk' or high-yield.
When a rating agency downgrades a country, its borrowing costs can rise and its currency can wobble, especially if the downgrade was unexpected.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.