CC (Credit Rating)

A CC credit rating is a classification given by credit rating agencies to borrowers or debt instruments that are considered highly speculative and at serious risk of default. Entities with a CC rating are financially distressed, and their ability to meet financial obligations is highly uncertain. This rating is just above the lowest ratings (C and D), which indicate imminent or actual default. Investors in CC-rated securities typically demand high interest rates to compensate for the significant risk of default.

Example

A company on the verge of bankruptcy might be downgraded to a CC credit rating, signaling to investors that there is a high likelihood of default.