What should I know about B credit ratings?
Credit Ratings
1 Discussion
A company's or government's credit rating might affect its capacity to borrow money. Those with extremely speculative grades, such as B, are considered riskier for investors than investment-grade corporations. They are granted to entities that may have difficulty paying their debts or to start-ups with a limited track record. Bonds with a B rating, on the other hand, can provide larger returns than investment-grade bonds. These potentially higher profits effectively compensate investors for the increased risk they are accepting.