Internal Risk Rating

Internal risk rating is a lender’s internal classification of investment risk. Scales and definitions vary and must be read from the reporting company.

Why this matters to income investors

A worsening rating can reveal credit deterioration before a borrower misses payment.

How to use internal risk rating in your research

Read the borrower or issuer disclosures for collateral, payment priority, covenant terms, and missed payments. Then check how a deterioration could reduce interest income or the value available to support future dividends.

This material is general education and information, not individualized investment, tax, or legal advice.