{"id":27701,"date":"2026-04-16T09:24:51","date_gmt":"2026-04-16T09:24:51","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=27701"},"modified":"2026-04-16T09:25:06","modified_gmt":"2026-04-16T09:25:06","slug":"what-is-credit-rating-and-why-does-it-matter-for-bonds-and-ncds","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-credit-rating-and-why-does-it-matter-for-bonds-and-ncds\/","title":{"rendered":"What is credit rating and why does it matter for bonds and NCDs?"},"content":{"rendered":"\n<p>A credit rating is an assessment of how likely a borrower, typically a company or government, is to repay the principal and interest on a debt instrument on time. When you invest in a bond or NCD, the credit rating gives you a quick indication of the risk involved.<\/p>\n\n\n\n<p>In India, credit ratings are assigned by agencies such as CRISIL, ICRA, CARE, and India Ratings. The rating scale works as follows:<\/p>\n\n\n\n<ul><li><strong>AAA<\/strong> \u2014 Highest safety, lowest risk of default<\/li><li><strong>AA<\/strong> \u2014 High safety, very low risk<\/li><li><strong>A<\/strong> \u2014 Adequate safety, low risk<\/li><li><strong>BBB<\/strong> \u2014 Moderate safety<\/li><li><strong>BB and below<\/strong> \u2014 Higher risk, speculative<\/li><li><strong>D<\/strong> \u2014 In default<\/li><\/ul>\n\n\n\n<p>Ratings from AAA to BBB are generally considered investment grade. Anything below that carries significantly higher risk.<\/p>\n\n\n\n<p>A company with an AAA-rated NCD is considered very safe but typically offers lower interest rates. A lower-rated issuer may offer higher interest to attract investors but carries a higher chance of default.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2973],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/27701"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=27701"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/27701\/revisions"}],"predecessor-version":[{"id":27703,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/27701\/revisions\/27703"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=27701"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=27701"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=27701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}