C (Credit Rating)

A C credit rating is a classification assigned by rating agencies to entities (corporations or governments) that are at a high risk of default or bankruptcy. This rating indicates that the entity is highly vulnerable and may not be able to meet its financial obligations. A C rating is just above D, which signifies actual default. Entities with a C rating are considered to have poor credit quality and face extreme financial difficulties, making them highly speculative investments.

Example

A company on the verge of bankruptcy may receive a C credit rating from agencies like Moody’s or S&P, signaling to investors that the firm is at risk of default and should be considered a highly speculative investment.