List of AA rated Bonds

Every investment carries some level of risk! And corporate bonds are no exception. When companies need funds for expansion or working capital, they borrow from investors through the bond market instead of relying only on banks. 

But not all companies have the same financial strength. Credit rating agencies like CRISIL, ICRA, or CARE assess each issuer’s financial health. They study factors like debt levels, cash flow, and repayment capacity to assign a credit rating.

Now, among the different grades lie the AA rated bonds, which could represent the second-highest level of safety (just one level below AAA). This rating may indicate low default risk and a strong ability to repay debt. 

For your reference, below is a list of AA bonds you may consider in 2025.

(The list of AA bonds offered by GoldenPi will be covered here.)

 

What are AA Rated Bonds?

AA rated bonds are debt instruments issued by companies that have received an “AA” credit rating from agencies, like CRISIL, ICRA, or CARE. This rating shows that the company is financially strong and has a very low chance of defaulting on interest or repayment.

Although not the highest rating (that’s AAA), AA is still considered investment-grade and safe for investors. Due to their second-best rating, AA rated bonds usually offer slightly better returns than AAA bonds.

 

Types of AA Bonds

AA rated bonds come in different options or types. They may be backed by assets (secured or unsecured) or have the ability to become shares (convertible or non-convertible). To pick the right financial product, check out the major AA bond types below:

Category	Type of Bond	Meaning
By Collateral	Secured Bonds	The company promises certain assets (like property, equipment, or accounts receivable) as security.  If the company cannot repay, investors can claim these assets.
By Collateral	Unsecured Bonds	The company does not pledge any assets.  Repayment depends only on the company’s financial strength + credit rating.
By Conversion	Convertible Bonds	These schemes start as bonds but can later be converted into the company’s shares.
By Conversion	Non-Convertible Bonds (NCBs)	They stay as fixed-income products until maturity.  You earn regular interest but cannot convert them into shares.

Who Can Invest in Corporate AA Bonds?

Corporate AA bonds are ideal for investors who want to earn regular non-market-linked income. These bonds are issued by financially stable companies, so they offer more safety compared to shares or low-rated bonds. Read out who should consider investing in them:

1. Those Who Prefer Safety

If you are a conservative investor with a lower risk appetite, AA bonds are a good option. They carry low default risk and offer better capital protection.

 

2. Those Looking for Regular Income

AA rated bonds pay interest at fixed intervals, such as monthly, quarterly, half-yearly, or annually.  The interest calculations are based on the coupon rate of the AA bond. By investing in them, you can earn guaranteed returns.

 

3. Those Who Want Moderate Risk

AA bonds carry lower risk compared to stocks or lower-rated bonds. However, they are riskier than AAA bonds.

 

4. Those Who Want to Diversify Their Portfolio

If you already invest in higher-risk products like equities or mutual funds, adding AA bonds to your portfolio can reduce volatility and give better stability.

 

How to Buy Corporate AA Bonds?

You can buy AA-rated bonds in two main ways, through the:

• Primary market 

or

• Secondary market

Both have different processes as mentioned below:

1. Primary Market (Through Bond IPOs)

When a company issues bonds for the first time, it does so through a new bond IPO. In this method, you invest directly with the issuer before the bonds are listed on exchanges. Let’s see how:

• You apply for these bond issues during the “subscription period”.
• The investment amount is blocked in your bank account using the ASBA (Application Supported by Blocked Amount) facility.
• If you receive the bonds, the blocked amount is debited, and the bonds are credited to your demat account.

 

2. Secondary Market (After Listing)

After the bonds are issued, they can be bought or sold anytime through the secondary market (just like shares on stock exchanges).

You can also invest online through GoldenPi, a SEBI-registered Debt Broker and an Online Bond Platform Provider (OBPP) license holder. The platform lists several AA rated and AAA-rated bonds, with potential returns of up to 15% (depending on the bond type and maturity).

 

How to Invest in Corporate Bonds on GoldenPi?

You can start investing in just three simple steps:

Step	Action	Description
1	Complete your KYC	Verify your identity  Link your PAN, Aadhaar, and bank account.
2	Choose the Right Corporate Bond	Browse through a range of secured and unsecured AA bonds.  Compare yields and select one that fits your investment criteria.
3	Make Payment to Invest	Pay directly through your linked bank account.

To Sum Up, AA Bonds = Capital safety + Competitive Returns!

So, now you know that AA bonds are one notch below AAA in credit rating. To compensate investors for this higher risk, they usually offer better returns than AAA bonds. 

If you are looking to diversify your portfolio with these fixed-income options, you can check out the latest list of AA bonds on the GoldenPi platform. The investment process is 100% digital and can be completed online in just a few steps!

 

AA Rated Bonds FAQs

What are the latest AA bond rates in 2025?

As of September 16, 2025, you can earn up to 11.60% p.a. by investing in AA bonds. 

However, your AA bond yield may be different. That’s because in the secondary market, bonds may not always trade at their face value.

If you buy at a discount (below face value), your actual return (yield) becomes higher than the coupon rate. In contrast, if you buy at a premium (above face value), your actual return is lower than the coupon rate.

 

Are AA Bonds Safe?

Credit rating agencies evaluate the company’s ability to repay debt. An AA rating is just one level below the safest category (AAA). It shows that:

• The company’s finances are strong.

and

• The risk of not paying interest or principal is low.

 

What is the difference between AAA and AA bonds?

The primary difference between AAA and AA bonds is that AAA bonds are issued by companies with the highest credit strength and negligible default risk. They offer safety but slightly lower returns. On the other hand, AA bonds come from firms that are still very stable but carry a slightly higher risk. So, they usually offer better yields than AAA bonds to attract investors.

 

How is the AA Rating Assigned?

The AA credit rating is assigned to bonds with long-term maturity exceeding 1 year. To assign the credit rating, agencies study several factors, such as:

• Interest coverage ratio
• Debt levels (leverage ratio)
• Cash flow strength

 

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Disclaimer:

This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.

Bonds or non-convertible debentures (NCDs) are regulated by the Securities and Exchange Board of India and other government authorities. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.