Rating Agency
A national credit agency providing an independent appraisal of the credit quality of the Issuer, the conduit borrower, if any, and/or the bond issue.
bond-basics
Rating
A judgment by a Rating Agency as to the credit quality of a Bond. Ratings are intended to give investors an indication as to the likelihood that the Principal of, and Interest on, the Bonds will be repaid. Ratings are typically issued before the Closing but are updated periodically during the term of the Bonds if the credit quality of the Bonds changes. Each Rating Agency has its own notation as to credit quality.
See Also
Downgrade (Ratings)
The lowering of a rating by a Rrting agency. Lower ratings indicate lower credit quality.
Upgrade (Ratings)
The increasing of a rating by a rating agency. Higher ratings indicate higher credit quality.
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Hundreds of Terms and Concepts
Mandatory Sinking Fund Redemption
A type of redemption that applies specifically to bonds issued as term bonds provided in the bond resolution/ordinance and/or an indenture, pursuant to which an issuer or a conduit borrower is required to retire a specific amount of the outstanding principal of the term bond by redemption on specific dates.