Corporate Bonds  

Dominion Bond Rating Service
Itemizes the latest ratings updates for corporate bonds as provided by Dominion Bond Rating Service Limited.
The Corporate Bond Rating Scale is as follows:
AAA Highest: Bonds rated AAA are of the highest credit quality. The degree of protection afforded principal and interest is of the highest order. Earnings are considered stable, the structure of the industry in which the Company operates is very strong, and the outlook for future profitability is extremely favourable. There are few qualifying factors present which would detract from the performance of the Company, and the strength of liquidity ratios is unquestioned.

AA Superior: Bonds rated AA are of superior credit quality, and protection of interest and principal is considered high. In many cases, they differ from bonds rated AAA only to a small degree.

A Satisfactory: Bonds rated A are of satisfactory credit quality. Protection of interest and principal is still substantial, but the degree of strength is less than with AA rated companies. Companies in this category may be more susceptible to adverse economic conditions.

BBB Adequate: Bonds rated BBB are of adequate credit quality. Protection of interest and principal is considered acceptable, but the Company is fairly susceptible to economic cycles, or there may be other adversities present which reduce the strength of these bonds.

BB Speculative: Bonds rated BB are defined to be speculative. The degree of protection afforded interest and principal is uncertain, particularly during periods of economic recession. Companies typically have limited access to capital markets.

B Highly Speculative: Bonds rated B are highly speculative. There is a reasonably high level of uncertainty as to the ability of the Company to pay interest and principal on a continuing basis in the future, especially in periods of economic recession.

C, CC, CCC Very Highly Speculative: Bonds rated in any of these categories are very highly speculative and are in danger of default of interest and principal. The degree of adverse elements present is more severe than with bonds rated B. In practice, there is little difference between these three categories, with, with CC and C normally used for lower ranking debt of companies for which the senior debt is rated in the CCC to B range.

D DefaultU Bonds rated D are in default of either interest or principal.

High or Low In addition to the above, the ratings may be modified by the quotation "high" or "low" to indicate the relative standing within a rating classification.

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