List of BBB Rated Bonds
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BBB are the lowest investment-grade bonds. Credit Rating Agencies like CRISIL, CARE, India Ratings, and ICRA provide these ratings to organisations to measure their creditworthiness.
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Maturity
Name | Issue Size | Maturity | Coupon |
---|---|---|---|
Rare Asset Reconstruction Limited | 120.00Cr | 31 Jul 2027 | 16.50 % |
Mahaveer Finance (India) Limited | 15.00Cr | 16 Mar 2027 | 16.00 % |
Wheelsemi Private Limited | 20.00Cr | 30 Jun 2024 | 14.50 % |
Wheelsemi Private Limited | 16.50Cr | 30 Mar 2023 | 14.50 % |
Samunnati Agro Solutions Private Limited | 40.00Cr | 15 Oct 2024 | 14.50 % |
Wheelsemi Private Limited | 10.00Cr | 10 Sep 2024 | 14.50 % |
Wheelsemi Private Limited | 20.00Cr | 25 May 2023 | 14.35 % |
Riviera Investors Private Limited | 20.00Cr | 13 May 2023 | 14.35 % |
Wheelsemi Private Limited | 25.00Cr | 25 Jul 2023 | 14.35 % |
Riviera Investors Private Limited | 20.00Cr | 25 Aug 2023 | 14.20 % |
All You Need To Know About BBB Rated Bonds
What are BBB-rated bonds?What do credit ratings of bonds mean?What is BBB bond yield?What are the benefits of BBB-rated Bonds?ConclusionWhat are BBB-rated bonds?
BBB are the lowest investment-grade bonds. Credit Rating Agencies like CRISIL, CARE, India Ratings, and ICRA provide these ratings to organisations to measure their creditworthiness. BBB bonds carry a moderate level of default risks currently, and the yield of these bonds will be comparatively higher than the AAA bonds. Having a BBB rating means that the company will repay the bondholders, and the risk of payment failure is low.
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 BBB bond yield?
The higher the risk, the more the return and vice versa. This is the fundamental concept of bonds. Since BBB bonds carry moderate risks, the yields are comparatively more than the AAA-rated bonds. For example, a government bond offers a yield of 4% to 6%, but BBB bonds offer a yield of 12% to 15% per annum.
What are the benefits of BBB-rated Bonds?
BBB-rated bonds are considered to have moderate risks and are backed by collateral, therefore, the risk of default is very low until and unless there is an adverse economic condition that can affect the repayments.
Conclusion
BBB-rated bonds are reliable for you if you are a little risk-averse and want to earn more returns than FDs. These bonds are mainly issued by corporates and are backed by collateral. If in case the company defaults, the collateral will be used to repay your debt, which means there are very few chances of you losing the money.
FAQs about BBB Rated Bonds
How are BBB bonds taxed?
BBB bonds are taxed in the same way as any other bonds. The interest you earn from BBB 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 at 10% without indexation for listed bonds. Also, a 10% TDS is applicable.
What is the tenure of BBB-rated Bonds?
The BBB bonds have a maturity range of 12 months to 5 years, depending upon the need of the issuing company.