Single-B
Corporate Credit Analysis glossary · Ratings, Syndication & Market Dynamics
Definition
Rating in the B+ / B / B- range (or B1 / B2 / B3). The 'core high-yield' tier, with materially elevated default risk and typical historical cumulative 5-year default rates of 15-25%.
Single-B in plain English
Credit ratings are letter grades for how likely a borrower is to pay you back, and 'Single-B' sits well down in the risky zone (graded B+, B, or B-). These are 'high-yield' or 'junk' borrowers — they pay high interest precisely because there's a real chance they won't repay: historically, roughly 15-25% of them default within five years. So if you lent to twenty Single-B companies, you'd expect several to run into serious trouble. It's the financial version of a class where a big chunk of students are genuinely at risk of failing — not a sure disaster, but you'd be foolish to assume everyone passes.
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