DEBT RATINGS Definition

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DEBT RATINGS are the creditworthiness of a borrower as measured in the U.S. by debt rating agencies Moody's and Standard and Poor's. A triple A (AAA) rating means that there is almost no likelihood of the borrower failing to pay.

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HIGH-YIELD DEBT is a business term referring to a corporate debt instrument (non-investment grade or junk bond), that has a higher yield (compared to investment grade debt) because of a high perceived credit risk (default risk). See also JUNK BOND.

COMPOSITE DEPRECIATION is the grouping of similar assets or dissimilar assets within the same class together for the purpose of computing a single depreciation rate to be applied to all assets within the group.

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