Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• CREDIT QUALITY
  
  A term that refers to the perceived likelihood of default by the issuer of a bond. Credit quality is usually determined by credit ratings, which range from AAA (default highly unlikely) to D (in default). Credit ratings are published by independent bond rating services. In a mutual fund, the term credit quality refers to the average rating of the fund's underlying securities, and does not apply to the stability or safety of the fund's shares.
  
  Back