Junk Bond Status - Moody's , S & P official definitions
Junk Bond includes any issuer with a credit rating of 'BB' or lower from the Standard & Poor Agency, or 'Ba' or lower from Moody's Agency.
S & P sees BB as follows - An issuer rated 'BB' has marginal financial security characteristics. Positive attributes exist, but adverse business conditions could lead to insufficient ability to meet financial commitments.
Moody's sees Ba as follows - Counterparties rated Ba offer questionable financial security. Often the ability of these entities to meet counterparty obligations may be uncertain and thereby not well safeguarded in the future.