B+ — S&P / Fitch
B1 — Moody’s

B+/B1 is within the range of ratings given to High Yield Bonds, also known as Junk bonds. B+/B1 is the 14th rating rating from the top rating of AAA/Aaa in the scales used by the Big Three credit ratings institutions, which are Fitch, Moody’s and S&P.

They evaluate the fundamentals of companies, municipal entities, and their bond contracts to determine how much risk of default is present. The limit for the category of Investment Grade bonds is BBB-, and there are a few categories of BB above B.

This places B+/B1 right in the middle of the spectrum of “junk bonds,” which means that they are more on the speculative side of things.

They pay higher yields than Investment Grade bonds, and this is a risk premium paid to investors to compensate them for the risk taken. In fact, another name for junk bonds is High Yield Bonds.

What is a Credit Rating?
What are Bond Ratings?