What Are AAA Bonds? Criteria, Examples & Types

By Rachel Warren – Updated Feb 19, 2025 at 12:19 PM EST

Key Points

AAA bonds have the highest rating and lowest default risk, offering stable returns.
They can be issued by stable governments and financially strong corporations.
Investors can buy AAA bonds individually or via bond funds for diversified portfolios.

AAA bonds are bonds with the highest credit rating from a major credit rating agency. They are considered low-risk investments and are often recommended for conservative investors. AAA bonds are considered to have the least risk of default since they are typically issued by companies or entities with a strong ability to pay the interest and principal.

Loading paragraph...

The word bonds in blue electronic block letters next to a green arrow pointing upward. — Image source: Getty Images.

Loading image...

Loading paragraph...

Loading pitch...

Loading paragraph...

Related investing topics

Loading paragraph...

Bonds vs. Stocks: What's the Difference?

Investing in stocks and bonds can help to build wealth for anyone with disposable income. Read about the differences between them.

Safest Stocks to Buy in 2026: Low-Risk Picks for Stability

These companies might be a good bet if you're looking for limited volatility.

Best ETFs for Long-Term Growth

The best long-term ETFs offer broad exposure to industries, asset classes, and geographies for a relatively low cost.

How and When to Sell Bonds

Find out when selling bonds is a good idea and how to cash in yours.

Loading hub_pages...

Loading paragraph...

Loading pitch...

About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

TMFRachelW

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's and S&P Global. The Motley Fool has a disclosure policy.