List of AAA Rated Bonds
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AAA rated bonds are the highest-rated investment-grade bonds. Indian credit-rating agencies like CRISIL, ICRA, CARE, and India Ratings provide these ratings after assessing the financial and operational health of the bond issuer and the risk of the individual bond.
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Name | Issue Size | Maturity | Coupon |
---|---|---|---|
NTPC Limited | 140.00Cr | 06 Nov 2023 | 11.25 % |
Kotak Mahindra Prime Limited | 40.00Cr | 22 Jun 2023 | 10.50 % |
Poonawalla Fincorp Limited | 25.00Cr | 24 Jan 2027 | 10.40 % |
Poonawalla Fincorp Limited | 35.00Cr | 07 Dec 2026 | 10.40 % |
Poonawalla Fincorp Limited | 15.00Cr | 06 Jan 2027 | 10.40 % |
Poonawalla Fincorp Limited | 15.00Cr | 03 Mar 2027 | 10.25 % |
Poonawalla Fincorp Limited | 5.00Cr | 06 Jun 2025 | 10.20 % |
HDB Financial Services Limited | 100.00Cr | 17 Oct 2023 | 10.20 % |
HDB Financial Services Limited | 80.00Cr | 18 Mar 2024 | 10.19 % |
Tata Capital Financial Services Limited | 100.00Cr | 26 Sep 2024 | 10.15 % |
All You Need To Know About AAA Rated Bonds
What are AAA rated bonds?What do credit ratings of bonds mean?What is AAA bond yield?What are the benefits of AAA rated Bonds?ConclusionWhat are AAA rated bonds?
AAA rated bonds are the highest-rated investment-grade bonds. Indian credit-rating agencies like CRISIL, ICRA, CARE, and India Ratings provide these ratings after assessing the financial and operational health of the bond issuer and the risk of the individual bond. AAA bonds are considered the safest as they have the lowest default risk and indicate the issuer's high creditworthiness. Having the lowest risk of default means there is a very low chance that the bond issuer will be unable to repay the principal and interest. Large and well-established companies with strong financials usually issue AAA bonds In India. Some of the most common issuers of AAA rated bonds are public-sector banks, public-sector undertakings and large private-sector banks and companies.
What do credit ratings of bonds mean?
SYMBOL | INVESTMENT SAFETY |
AAA | These are securities with the highest safety as they have the lowest credit risk and highest safety regarding fulfilling financial obligations. |
AA | These are securities with high safety as they have very low credit risk and very high safety regarding fulfilling financial obligations. |
A | These are securities with moderate safety as they have low credit risk and high safety regarding fulfilling financial obligations. |
BBB | These are securities with moderate safety as they have moderate credit risk and high safety regarding fulfilling financial obligations. |
BB | These are securities with moderate risk regarding fulfilling financial obligations. |
B | These are securities with high risk regarding fulfilling financial obligations. |
C | These are securities with high risk regarding fulfilling financial obligations. |
D | Securities with this rating are in default or are expected to be in default so |
*Ratings for AA to C may include modifiers, such as "+" or "-", to indicate the relative standing within the category. For example, a rating of CRISIL AA+ would indicate a stronger standing than a CRISIL AA. Similarly, a CRISIL AA bond will have a lower default risk than CRISIL AA- bond.
What is AAA bond yield?
High-risk high return and vice versa is a fundamental concept of investment returns. As you know, AAA rated bonds have very low risk, so their returns are also relatively low. If, as an investor, you are looking for investment options that provide capital protection and fixed income, you can consider investing in AAA rated bonds.
What are the benefits of AAA rated Bonds?
Since AAA bonds are a safe investment product, they come with the virtue of providing capital preservation. As a result, it is a good investment choice for risk-averse investors who want fixed returns with lowest risk.
Conclusion
AAA rated bonds offer a reliable investment avenue characterised by regular income, stability, and diversification benefits. Issuers with good financial health and robust management practices back these bonds. You can invest in AAA rated bonds if you are looking for safe investment products.
FAQs about AAA Rated Bonds
How are AAA bonds taxed?
AAA bonds are taxed in the same way as any other bonds. The interest you earn from AAA bonds will be taxed as per your income tax slab under the head ‘Income from Other Sources’. The selling price and the holding period of the bond determine capital gains from bonds. A holding period of 12 months or more is considered long-term for listed bonds, while for unlisted bonds, it's 36 months. Short-term gains for listed and unlisted bonds are taxed at the individual slab rate. Long-term gains are taxed 10% without indexation for listed bonds and 20% for unlisted bonds.
Are government bonds AAA-rated bonds?
No, government bonds are not AAA bonds. These bonds are not rated as government securities and do not require a stamp from the rating agencies. They are considered a notch better than AAA-rated bonds because the government issues them, and sovereign backing is considered the best credit. SGBs, T-Bills, and state development loans (SDLs) all these instruments are not AAA rated but have sovereign backing. The risk of default for such securities is negligible.