A recent highlight in the corporate bond market is that Tesla’s August 2017 bonds, on issue, had a coupon rate of 5.3%. The yield is now 9.6% on the back of a very poor first quarter earnings and a huge cash burn. This yield is high, even for a bond rated B- by S&P, and Caa by Moody’s.

Without dwelling upon Tesla, I though it may be of value to publish a couple of tables showing S&P, Moody’s and Fitch’s bond ratings.

credit_rating_b

 

Credit_Rating_a

So, without picking on Tesla any further, I trust you find the above tables of interest.

21 May 2019 Markets