Definition of AAA:

  1. The top rating awarded to qualifying corporate bonds by the bond rating agencies such as Standard & Poors (AAA) and Moodys (Aaa). These ratings mean: (1) the bonds are of the highest quality (are gilt edged), (2) carry the least degree of investment risk, and (3) are fully expected to pay both interest and principal on time. Other rating agencies use different designations. See also bond ratings.

  2. The term "default" refers to a bond issuer failing to make the principal amount and/or interest payment due to an investor. Since AAA-rated bonds are perceived to have the smallest risk of default, these instruments tend to offer investors the lowest yields among bonds with similar maturity dates.

  3. American Automobile Association.

  4. See triple A.

  5. AAA is the highest possible rating that may be assigned to an issuer's bonds by any of the major credit rating agencies. AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default. Rating agencies Standard & Poor's (S&P) and Fitch Ratings use the letters "AAA" to identify bonds with the highest credit quality, while Moody's uses the similar "Aaa", to signify a bond's top tier credit rating.

How to use AAA in a sentence?

  1. The highest possible rating that a bond may achieve is AAA, which is only bestowed upon those bonds that exhibit the highest levels of creditworthiness.
  2. Finding a bond with a good AAA rating is a solid way to invest your money with very minimal risks long term.
  3. If you are looking for a bond to invest in and arent sure which is a wise bet look for one that has a AAA quality rating.
  4. This AAA rating is used by Fitch Ratings and Standard & Poor's, while Moody's uses the similar "Aaa" lettering.
  5. Bonds that receive AAA ratings are viewed as the least likely to default. .
  6. Issuers of AAA-rated bonds generally have no trouble finding investors, although the yield offered on these bonds is lower than other tiers.
  7. As countries like the United States continue to inflate debt and treat it like its of no substance, their credibility begins to erode, and after awhile spent in such impeccable standing, they lose their AAA credit rating.

Meaning of AAA & AAA Definition