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In countries with consistently high inflation, normal borrowings at banks may also be inflation indexed. |
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Specific bond debts owed by both governments and private corporations is rated by rating agencies, such as Moody's, Fitch Ratings Inc., A. M. Best and Standard & Poor's. The government Debt Relief or clique itself will also be given its own in halves rating. These agencies assess the ability of the debtor to honor his obligations and accordingly give him a attention rating. Moody's uses the letters Aaa Aa A Baa Ba B Caa Ca C, where ratings Aa-Caa are qualified by numbers 1-3. Munich Re, for example, currently is rated Aa3 (as of 2004). S&P and other rating agencies have slightly contrary systems using capital letters and +/- qualifiers.
