When you buy a bond issued by a corporation or municipal government, you can use rating services to research the investment risks that you face. You can get the rating information directly from the rating services, the financial press, or from your broker or financial adviser.
Among the best-known services are
Standard & Poor's
and
Moody's Investors Service, Inc.
The rating services pass judgment on municipal bonds, all kinds of corporate bonds, and international bonds. U.S. Treasury bonds, bills, and notes are not rated. The assumption is that they're absolutely solid since they're obligations of the federal government, backed by its full faith and credit. This means the government has the authority to raise taxes to pay off its debts.
