Lendings to stable financial entities such as bulky companies or governments are often termed "risk free" or "low risk" and false at a so-called "risk-free diversion rate". This is because the arrears and bag are highly unlikely to be defaulted. A ace case of such risk-free interest is a US Treasury security - it yields the minimum return come-at-able in economics, but investors have the convenience of the (almost) doubtful expectation that the US Treasury will not default on its credit instruments.
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 or community itself will also be given its own distributed rating. These agencies assess the ability of the debtor to honor his obligations and accordingly give him a fame rating. Moody's uses the letters Aaa Aa A Baa Ba B Caa Ca C, where ratings Aa-Caa are qualified by numbers Debt Relief 1-3. Munich Re, for example, currently is rated Aa3 (as of 2004). S&P and other rating agencies have slightly colorful systems using capital letters and +/- qualifiers.
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