1. Aaa is the highest possible bond rating from Moody's.
2. Credit rating agencies can have conflicts of interest because they are paid by the companies they rate.
3. A Z-Score below 1.8 indicates a company is in the "Safe Zone".
4. A bond with a rating of BBB is considered "junk".
5. Bonds rated D are in default.
6. A Z-Score of 3.0 or higher indicates a company is financially safe and in the "Safe Zone".
7. The government introduced reforms to reduce conflicts of interest within credit rating agencies after the 2008 financial crisis.
8. A Z-Score of 1.0 means the company is in the "Distress Zone" and is at high risk of bankruptcy.
9. A bond rated AAA is considered to be of very high quality with minimal default risk.
10. A bond rated CCC by S&P is still considered investment grade.
11. Bonds rated Baa from Moody's are considered the lowest investment-grade bonds.
12. The highest bond rating from Standard & Poor’s is AA.
13. Bonds rated below BBB are considered speculative or junk bonds.
14. Credit rating agencies are government-owned institutions.
15. A Z-Score measures a company's likelihood of going bankrupt within two years.
16. A Z-Score is primarily used to measure a company's profitability.
17. Bonds rated below investment grade are often called "high yield" bonds.
18. The higher the Z-Score, the greater the risk of bankruptcy for a company.
19. A credit rating downgrade typically leads to higher borrowing costs for a company.
20. Companies with a Z-Score below 1.8 have a very low risk of bankruptcy.