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AAA (credit rating)

AAA (credit rating) Definition

AAA is the highest credit rating given by debt analysis agencies such as Standard and Poors, Moody's, and A. M. Best. A triple-A credit rating allows a corporation or government to borrow at a low interest rate because the market accepts a small risk premium.

In contrast, companies with poor creditworthiness must often borrow at high interest rates by issuing high yield bonds (commonly referred to as "junk bonds").

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