BB+ (Credit Rating)

BB+ is a credit rating given by rating agencies to indicate that a borrower, such as a corporation or government, is less vulnerable in the near term but faces significant uncertainties or exposure to adverse business, financial, or economic conditions. This rating is one notch below investment grade, meaning it is considered speculative or “junk” status. A BB+ rating suggests that while the entity currently meets its financial obligations, it is at higher risk of default compared to higher-rated entities. Investors typically expect higher returns for lending to entities with a BB+ rating due to the increased risk.

Example

A corporation with a BB+ rating may issue bonds at a higher interest rate compared to companies with investment-grade ratings like BBB, reflecting the additional risk to investors.