[Verse 1]
When companies need money they issue bonds to grow
But how do we know if they'll pay us what they owe
That's where credit ratings come to save the day
Three agencies help show us the safest way
[Chorus]
Moody's S and P and Fitch they rate
Triple A means safe don't hesitate
B B B and below means high yield high risk
Investment grade above that's the safer pick
Credit ratings tell the story
Of who will pay with cash and glory
[Verse 2]
Investment grade starts at Triple B and goes up high
These bonds are safer bets that institutions buy
Banks and pension funds they love this grade
Lower yields but steady payments guaranteed
[Chorus]
Moody's S and P and Fitch they rate
Triple A means safe don't hesitate
B B B and below means high yield high risk
Investment grade above that's the safer pick
Credit ratings tell the story
Of who will pay with cash and glory
[Verse 3]
High yield bonds are risky with ratings double B
And lower down they go the more risk you'll see
But higher yields reward those willing to take chance
Junk bonds they're called in financial parlance
[Bridge]
How do they decide what rating to assign
They study balance sheets and bottom line
Cash flow debt ratios and industry trends
Management quality on this it all depends
[Chorus]
Moody's S and P and Fitch they rate
Triple A means safe don't hesitate
B B B and below means high yield high risk
Investment grade above that's the safer pick
Credit ratings tell the story
Of who will pay with cash and glory
[Outro]
From Triple A down to single C
Credit ratings set the borrowers free
Know your grades before you invest
Rating agencies help you choose the best