Overview
Primary Market
Secondary Market
Bond Rating
Invest. Procedure
Home > Investment Guide > Bonds > Bond Rating

 Bond Rating

The bond rating system assigns a rating for a security, ranging from "AAA" to "D" depending on the issuer's ability to pay interest and repay principal as evaluated on the basis of profitability, as well as the stability and growth potential of the issuer.


Ratings  
AAA Unquestionable ability to pay interest and repay principal
AA More than able to pay interest and repay principal
A Able to pay interest and repay principal
BBB Able to pay interest and repay principal, however, there are some uncertain elements regarding future company stability
BB Although currently able to pay interest and repay principal,
may have difficulties in the near future
B Uncertain ability to pay interest and repay principal. A worsened situation may lead to default risk
CCC High default risk; questionable ability to pay interest and repay principal
CC Higher default risk
C Very high default risk
D Cannot pay interest and repay principal and is most likely a candidate for bankruptcy.

The Korean securities regulations require that all public issuance of corporate debentures (non-guaranteed bonds) have credit ratings from two ratings agencies.