Bonds, Interest Rates & Exchange Rates
Does a high credit rating mean a low product risk grade?
Not necessarily. A credit rating assesses the issuer's ability to repay principal and interest, whereas the product risk grade assigned by the distributor also takes into account factors such as ease of redemption and the complexity of the product's structure.
As in an FSS example, contingent capital securities with a credit rating of AA- can still be classified as high risk in terms of product risk grade, so check both.
This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.