BB / Ba Rating
Corporate Credit Analysis glossary · Corporate Credit Analysis
Definition
A high-yield (speculative-grade) rating one notch below investment grade. BB+/Ba1 sits just below the IG line; BB/Ba2 and BB-/Ba3 indicate progressively weaker credits with meaningful default risk.
BB / Ba Rating in plain English
Rating agencies grade companies on how likely they are to repay debt, like a credit report card. 'BB' (or 'Ba' in Moody's spelling) is one grade below the safe 'investment-grade' cutoff — it's the top of the risky 'high-yield' or 'junk' zone, where real default risk starts to matter. Within it there's a ladder: BB+/Ba1 sits just under the safe line, then BB/Ba2, then BB-/Ba3, each rung meaning a shakier borrower. Think of it as a solid-but-not-guaranteed student: probably fine, but you'd want a bit of extra reward for lending to them.
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