Stability Bonds would need to have high credit quality to be accepted by investors. Stability Bonds should be designed and issued such that investors consider them a very safe investment. Consequently, the acceptance and success of Stability Bonds would greatly benefit from the highest rating possible. An inferior rating could have a negative impact on its pricing (higher yield than otherwise) and on investors' willingness to absorb sufficiently large amounts of issuance. This would particularly be the case if Member States' national AAA issuance would continue and thereby co-exist and compete with Stability Bonds. High credit quality would also.
