Risk rating is key to all investments. While bonds are widely and rightly believed to carry less risk than, for instance, stocks, the rating of the risk of the bond issuer’s default is crucial for many reasons. The most popular agencies which public risk ratings are: Moody’s, Standard&Poor’s, Fitch. Polish regulations do not require mandatory risk rating of bonds except for bonds introduced to foreign markets. However, ratings give the issuer more credibility and prestige. Before instruments are rated, the agency performs an in-depth analysis of the issuer’s financial standing and outlook as well as all risk factors. This impacts the cost of capital raised by the issuer: the selling price of the bonds or their interest rate. Securities of a higher rating usually yield less interest or are sold at higher prices according to the overarching principle of the capital market: less risk means less gain. Ratings reflect the issuer’s credit risk using standard symbols. Ratings are assigned at the time of a bond issue and are reviewed until their maturity.

Ratings assigned by rating agencies and their interpretation

Moody’s Standard & Poors Fitch Interpretacion
Aaa AAA AAA Top quality bonds
Aa AA AA High quality bonds
A A A Bonds with a high credibility of payment; may be downgraded in future.
Baa BBB BBB Medium quality bonds. Payment of the principal and interest is not fully secured but is not without guarantee.
Ba BB BB Bonds of somewhat speculative character.
B B B  
B CCC CCC Speculative bonds, highly uncertain.
Caa CC CC  
Ca C C  
C DDD RD Significant risk of default
  DD D  


Date: 2017-06-27
  Corporate Municipal
Number of series 412 63
Issue value 63.28 3.57

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Session date: 2017-06-27
Name Quotation
(thous. PLN)
GNB0518 99.6000 501.7200
ALR0522 106.5000 279.5600
GNB0418 99.7900 251.3300