B (Credit Rating)

A B credit rating is a grade given by credit rating agencies to indicate the creditworthiness of a borrower, typically a corporation or government. A B rating suggests that the borrower is more vulnerable to adverse business, financial, or economic conditions, but currently has the capacity to meet its financial obligations. This rating is considered speculative, meaning it is not investment grade and carries a higher risk of default compared to higher-rated entities.

Example

A company with a B credit rating may issue bonds at a higher interest rate compared to a company with a higher rating like A, reflecting the greater risk perceived by investors.