List of AAA Rated Bonds in India 2024 (2024)

What are AAA rated bonds?

AAA rated bonds are the highest-rated investment-grade bonds. Indian credit-rating agencies like CRISIL, ICRA, CARE, and India Ratings provide these ratings after assessing the financial and operational health of the bond issuer and the risk of the individual bond. AAA bonds are considered the safest as they have the lowest default risk and indicate the issuer's high creditworthiness. Having the lowest risk of default means there is a very low chance that the bond issuer will be unable to repay the principal and interest. Large and well-established companies with strong financials usually issue AAA bonds In India. Some of the most common issuers of AAA rated bonds are public-sector banks, public-sector undertakings and large private-sector banks and companies.

What do credit ratings of bonds mean?

SYMBOLINVESTMENT SAFETY
AAAThese are securities with the highest safety as they have the lowest credit risk and highest safety regarding fulfilling financial obligations.
AAThese are securities with high safety as they have very low credit risk and very high safety regarding fulfilling financial obligations.
AThese are securities with moderate safety as they have low credit risk and high safety regarding fulfilling financial obligations.
BBBThese are securities with moderate safety as they have moderate credit risk and high safety regarding fulfilling financial obligations.
BBThese are securities with moderate risk regarding fulfilling financial obligations.
BThese are securities with high risk regarding fulfilling financial obligations.
CThese are securities with high risk regarding fulfilling financial obligations.
DSecurities with this rating are in default or are expected to be in default so

*Ratings for AA to C may include modifiers, such as "+" or "-", to indicate the relative standing within the category. For example, a rating of CRISIL AA+ would indicate a stronger standing than a CRISIL AA. Similarly, a CRISIL AA bond will have a lower default risk than CRISIL AA- bond.

What is AAA bond yield?

High-risk high return and vice versa is a fundamental concept of investment returns. As you know, AAA rated bonds have very low risk, so their returns are also relatively low. If, as an investor, you are looking for investment options that provide capital protection and fixed income, you can consider investing in AAA rated bonds.

What are the benefits of AAA rated Bonds?

Since AAA bonds are a safe investment product, they come with the virtue of providing capital preservation. As a result, it is a good investment choice for risk-averse investors who want fixed returns with lowest risk.

Conclusion

AAA rated bonds offer a reliable investment avenue characterised by regular income, stability, and diversification benefits. Issuers with good financial health and robust management practices back these bonds. You can invest in AAA rated bonds if you are looking for safe investment products.

List of AAA Rated Bonds in India 2024 (2024)

FAQs

How many AAA rated companies are there in India? ›

There are 2765 entities rated AAA on the national scale by CRAs in India. However, the universe of rated companies is huge at ~32,500. In that context, AAA rated companies in India is less than 1% of the universe (see table below). Companies rated A and higher account for just ~13% of the rated universe.

How many AAA rated bonds are there? ›

Currently there are only two companies in the United States with an AAA credit rating: Microsoft and Johnson & Johnson.

What is the current yield on AAA rated corporate bonds India? ›

Moody's Seasoned Aaa Corporate Bond Yield is at 5.34%, compared to 5.40% the previous market day and 4.67% last year. This is lower than the long term average of 6.46%. The Moody's Seasoned Aaa Corporate Bond Yield measures the yield on corporate bonds that are rated Aaa.

What are AAA bonds in India? ›

AAA bonds, indicating the highest creditworthiness, are typically issued by entities like the Government of India, Public Sector Undertakings, financially sound financial institutions, and secure infrastructure companies.

Which is No 1 Indian company in India? ›

Reliance Industries, a conglomerate holding company, is the largest company in India by market cap.

What is the interest rate on AAA rated corporate bonds? ›

Corporate Bond Rates
Moody's Seasoned Aaa Corporate Bond Yield5.24%
Moody's Seasoned Baa Corporate Bond Yield5.92%
US Corporate A Effective Yield5.39%

How risky is AAA grade bond? ›

AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default.

Are AAA bonds a very safe investment? ›

AAA-rated bonds are a secure investment option for risk-averse investors seeking a stable income stream and capital preservation. While they may offer lower yields and limited capital appreciation, their low default risk makes them an essential component of a well-diversified investment portfolio.

Which country has an AAA rating? ›

Credit Rating
S&PMoody's
AustraliaAAAAaa
CanadaAAAAaa
DenmarkAAAAaa
GermanyAAAAaa
112 more rows

Which rating is best for bonds in India? ›

AAA-rated instruments are the safest, with low default risk. The credit risk associated with D-rated bonds is the highest, or the bond is currently the default. Although the terminology of ratings differs for each rating agency, the level of risk involved is standard.

What is the nifty AAA bond? ›

Nifty AAA Corporate Bond Indices measures the performance of AAA rated corporate bonds across 6 duration buckets (Macaulay Duration). Each Index may consist of issuers, each represented by its most liquid bonds of the concerned Macaulay's Duration bucket.

How to buy government bonds in India online? ›

The RBI allows eligible investors to buy G-Secs, State Development Loans (SDLs) and Treasury Bills (T-Bills) by participating in non-competitive bidding (NCB) on the NSE's goBID or BSE's BSE Direct web portal or mobile application.

Which type of bond is safest in India? ›

Government Securities

Bonds issued by the Central and State Governments are called Government security. Since these are issued by Governments they carry no credit risk. These are one of the safest types of Investment options in India to earn periodic interests and principal on maturity.

How to select best bonds in India? ›

Bonds with lower credit ratings may offer higher coupon rates, but they may not be paid out if the company defaults. The coupon rate is another important factor to look into when you are choosing bonds to invest in. This is the rate at which interest payments are made by the issuer to the investor.

How many AAA bonds are there? ›

Just two companies in the S&P 500, Johnson & Johnson (JNJ) and Microsoft (MSFT), maintain their pristine AAA credit ratings from S&P, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.

What is AAA credit rating in India? ›

What are AAA rated bonds? AAA rated bonds are the highest-rated investment-grade bonds. Indian credit-rating agencies like CRISIL, ICRA, CARE, and India Ratings provide these ratings after assessing the financial and operational health of the bond issuer and the risk of the individual bond.

How many credit rating companies are there in India? ›

How many credit rating agencies are in India? There are a total of seven credit agencies in India viz, CRISIL, CARE, ICRA, SMREA, Brickwork Rating, India Rating and Research Pvt. Ltd and Infomerics Valuation and Rating Private Limited.

What are the 5 rating company in India? ›

These ratings are assigned by specialised agencies like CRISIL (Credit Rating Information Services of India Limited), ICRA (Investment Information and Credit Rating Agency), CARE (Credit Analysis & Research Ltd), ONICRA (Onida Individual Credit Rating Agency), and SMERA (Small and Medium Enterprises Rating Agency of ...

What is AAA rating by CRISIL? ›

On a domestic scale, ratings assigned by CRISIL Ratings are relative to the sovereign rating of the Government of India, which is assumed to have the highest rating of 'AAA'. A credit rating by CRISIL Ratings indicates its current opinion on the probability of default on the rated instrument.

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