: Analysts review financial statements, focusing on performance ratios, debt leverage, and interest coverage (e.g., EBITDA).

Often called "junk bonds," signaling higher default risk or actual default.

: A higher rating lowers the cost of borrowing by allowing access to cheaper interest rates.

: The entity is currently in default on its financial commitments. The Rating & Review Process

: Ratings bridge the information gap, helping them decide which bonds or securities align with their risk tolerance.

: They evaluate management quality, industry conditions, and ESG (Environmental, Social, and Governance) factors .