What is the projected default risk for different bond ratings? - bond ratings chart
Does anyone know where there is a table showing the risk of failure is likely, given a particular rating by several rating agencies?
How risky is AA or AAA to BBB from BB?
Thank you!
Wednesday, January 6, 2010
Bond Ratings Chart What Is The Projected Default Risk For Different Bond Ratings?
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3 comments:
There is a table showing the percentage of bonds increases from one grade to another, 5 years corporate bonds and default rates on their 1970-2001
And a document has a table for comparison of rates and default rates.
AAA: almost zero probability of failure
AA: very low probability (less than 0.1%)
A: low probability of default (approximately 0.15%)
BBB: low probability / medium failure lowest (investment grade) (0.3%)
BB: average probability of failure (1.2%)
B: PD high (3.5%)
C: very high, about 13% probability of default.
I do not know where (default rates) would be good. But with all the investments are books, is one of them.
I remember that was the expected default rate on BBB (investment grade) bonds 5%.
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