(02-22-2019, 11:56 AM)Otter Wrote: Credit rating is becoming an ever more important part of my portfolio strategy for selecting and keeping stocks. Companies with lousy credit don't have a lot of room to maneuver when times get tough. As I mentioned in the initial post, BBB+ and better is my preferred range for creditworthiness. KHC today (BBB rating) just reiterated that sentiment.
Perhaps no surprise that some of my worst-performing holdings have lousy credit ratings:
BT: BBB
CVS: BBB
F: BBB
GIS: BBB
SKT: BBB
T: BBB
Granted, I have some dogs with good credit (NGG, QCOM, WFC), but those downtrends tend to be from unique issues (regulatory, Brexit, lawsuits, etc.). Clean balance sheets will outperform in the next downturn.
Correct me if I'm wrong but I thought BBB/Baa2 credit ratings were acceptable, not the best obvious but not really considered lousy or bad credit ratings for a business...not to be funny but wouldn't they be better then say, "ok"....lol...I do love those commercials!
What site do you guys use to check CR, other then googling the ticker's CR? Fidelity doesn't make it easy unless I'm missing the CR on their site.