Your Bond Rating Quiz

Ted

FYI: As we all know bonds are rated by various rating agencies such as Moody's, S&P, and Fitch. The better the rating the less chance of default. The bonds are given letter grades as to their credit quality from AAA, AA, A, BBB, BB, B, CCC, CC, C, D. and unrated. Your question today is to name the only companies the have a AAA rating for their bonds. Answer later today.
Regards,
Ted

Answer:
1. Exxon Mobil
2. Johnson & Johnson
3. Microsoft

fundalarm

MSFT?

Mark

All of the above

Ted

@fundalarm: Yes, Microsoft Corp. (MSFT), the world’s largest software maker, is proving the value of an AAA rating.
Regards,
Ted
http://www.bloomberg.com/news/print/2012-11-05/microsoft-plumbs-yield-depths-with-aaa-issue-corporate-finance.html

fundalarm

Well, i assumed that compared to others they have precious little debt. Anyways.. what do I win?

fundalarm

Well, if aapl ever wanted to issue a few bln of debt, it too will be 3ple a.

JohnChisum

@fundalarm, Ask and you shall receive.

http://quicktake.morningstar.com/StockNet/bonds.aspx?symbol=AAPL

rjb112

John, I believe you are the resident Apple expert

JohnChisum

Thank you for those kind words.

If I am not mistaken, the bonds are priced in € only. I'm not completely sure on that though.

fundalarm

ok, ok. AAPL is AA+... just like the US... it's funny though that morning* felt the need to 'rate' the debt in a lower part of the 'medium' quality. how are they in the bond rating business?