
High-yield / Non-investment grade
What is High yield/Non-investment grade?
A high-yield debt security pays a high return to compensate for the larger counterparty risk associated with the investment. Counterparty risk (risk of loss due to the default of a counterparty) can be measured and rated. The main rating agencies (Standard & Poor's, Fitch, Moody's) evaluate issuers' ability to repay their debts, i.e., to repay the right amounts on the right dates, and assign them a corresponding rating.
Bond Ratings | |||
Moody’s | S&P | Fitch | Category |
Aaa | AAA | AAA | Investment grade |
Aa1 | AA+ | AA+ | |
Aa2 | AA | AA | |
Aa3 | AA- | AA- | |
A1 | A+ | A+ | |
A2 | A | A | |
A3 | A- | A- | |
Baa1 | BBB+ | BBB+ | |
Baa2 | BBB | BBB | |
Baa3 | BBB- | BBB- | |
Ba1 | BB+ | BB+ | High yield Non-Investment grade Speculative grade |
Ba2 | BB | BB | |
Ba3 | BB- | BB- | |
B1 | B+ | B+ | |
B2 | B | B | |
B3 | B- | B- | |
Caa1 | CCC+ | CCC | |
Caa2 | CCC | ||
Caa3 | CCC- | ||
Ca | CC | CC | |
C | C | C | |
D | D | D | Default |
Higher quality bond issuers (AAA to BBB-) are considered investment-grade or good quality. Issuers with a rating of BB+ to below are seen as riskier, and they are typically referred to as non-investment grade, speculative grade or high yield. From the investor’s point of view, high-yield bonds can be attractive because of the higher expected return compared with securities with low counterparty risk.
Our latest news and insights

We are pleased to share the excellent results of the 2025 Euromoney Cash Management satisfaction survey. These results...

Societe Generale has supported MSC Cruises (MSCC), one of the world's leading cruise companies, in the financing of two...

By Charles Wu, Head of Sales, Global Transaction Banking, Societe Generale China