Baa3

Baa3

A credit rating used by Moody's credit agency for long-term bonds and some other investments. A Baa3 rating represents a relatively low-risk bond or investment; banks are allowed to invest in Baa3 rated bonds. However, Baa3 is at the bottom of investment-grade bond ratings, being only one grade above junk bond ratings. Risk-averse investors must therefore exercise caution in Baa3 investments, especially if the rating was recently downgraded. It is a subdivision of a Baa rating.