Bond ratings are assessments provided by credit rating agencies to evaluate the creditworthiness of a bond issuer. These ratings help investors understand the risk associated with investing in a particular bond. Higher ratings indicate lower risk, while lower ratings suggest a higher likelihood of default. The ratings typically range from AAA (highest quality) to D (default). Agencies like Moody's, Standard & Poor's, and Fitch use various criteria, including financial health and economic conditions, to assign these ratings. Investors often rely on these ratings to make informed decisions about which bonds to purchase.