What are bond ratings and why are they assigned? Bonds are like loans the issuers get from investors. Just as your credit worthiness is evaluated when you apply for a loan, the credit worthiness of the bond also needs to be evaluated. To do this, independent agencies have created a rating system. To help investors evaluate bonds, private rating agencies such as Moody's and Standard \& Poor's assign grades to designate a bond's quality. Which of the following statements regarding the rating system are correct? Check all that apply. Different rating systems are used for corporate versus municipal bonds. The term junk bond means that the interest payments are not being met. A bond rated Ba by Moody's is comparable to a bond rated BB by Standard \& Poor's. The average yields on B bonds are generally lower than the average yields on C bonds. The rating B signifies a lower risk of default than a Ba rating