List of AA+ Rated Bonds in India 2026

Name: AA+ Rated Bonds
Brand: Bonds
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In the fixed-income space, credit ratings play a crucial role in helping investors assess the safety of their investments. Among the various categories, AA+ rated bonds stand out as instruments that offer a strong combination of reliability and better returns than top-tier AAA bonds.

These bonds are issued by financially sound institutions and corporations that demonstrate a high ability to meet their repayment obligations, making them a popular choice for investors seeking stable income with moderate risk exposure.

Continue reading for a curated list of AA+ rated bonds in India for 2026, helping you explore available options and make informed investment decisions based on credit quality and return potential.

What are AA+ Rated Bonds?

AA+ rated bonds are debt securities that have received a high credit rating from credit rating agencies such as CRISIL, ICRA, or CARE. This rating indicates that the issuer has a very strong capacity to meet its financial obligations and repay interest and principal on time, with a relatively low risk of default.

Although they are slightly below in the rating category, AA+ bonds are still considered high-quality investments within the fixed-income segment. Investors often consider these bonds for their balance of credit reliability and potential returns.

Key Features and Benefits of AA+ Rated Bonds

Here are some of the features and benefits of AA+ rated bonds-

High Credit Quality: AA+ rated bonds reflect strong financial stability of the issuer, indicating a low probability of default compared to lower-rated bonds.

Attractive Risk-Return Balance: These bonds often offer slightly higher interest rates than AAA-rated bonds, making them appealing for investors seeking better returns with controlled risk.

Fixed Interest Income: Most AA+ bonds provide regular interest payouts such as monthly, quarterly, or annually, ensuring predictable income.

Defined Maturity Period: These bonds come with a fixed tenure, allowing investors to plan their financial goals with clarity.

Portfolio Diversification: AA+ bonds help diversify investment portfolios by adding a relatively stable fixed-income instrument alongside equities or mutual funds.

Wide Availability Across Sectors: Many NBFCs, financial institutions, and corporates issue AA+ rated bonds, giving investors multiple options to choose from.

List of AA+ Rated Bonds In India

COMPANY	ISIN	NAME OF THE INSTRUMENT	DATE OF ALLOTMENT	COUPON RATE	CREDIT RATING
STATE BANK OF INDIA	INE062A08363	8.25% UNSECURED RATED LISTED NON CONVERTIBLE PERPETUAL SUBORDINATED BASEL III COMPLAINT ADDITIONAL TIER 1 BONDS IN THE NATURE OF DEBENTURES. SERIES III	9 March 2023	8.25%	AA+ CARE RATINGS LIMITED DT 02-03-2023
L&T FINANCE LIMITED	INE476M08014	9.35% UNSECURED REDEEMABLE NON CONVERTIBLE SUBORDINATE BONDS ELIGIBLE FOR TIER II CAPITAL IN THE NATURE OF DEBENTURES. SERIES O OF FY 2014-15. DATE OF MATURITY 29/01/2025	29 January 2015	9.35%	AA+ CARE RATINGS LIMITED DT 12-01-2015
NASHIK MUNICIPAL CORPORATION	INE579F24032	8.05% UNSECURED RATED LISTED REDEEMABLE NON CONVERTIBLE GREEN MUNCIPAL BOND IN THE NATURE OF DEBENTURE SERIES II STRPP C DATE OF MATURITY 05/03/2031	5 March 2026	8.05	AA+ CRISIL RATINGS LIMITED DT 14-01-2026
YES BANK LIMITED	INE528G09061	10.25% Unsecured Non Convertible Tier -I Subordinated Perpetual Bonds in form of promissory notes.	5 March 2010	10.25% (Refer Remark)	AA+ BRICKWORK RATINGS INDIA PRIVATE LIMITED DT 16-09-2009
L & T INFRASTRUCTURE FINANCE COMPANY LIMITED	INE691I07190	7.50% Secured Non-Convertible Long term infrastructure bonds in the nature of Secured Redeemable Non Convertible Debenture.. Series- 4. Date of Maturity 02/12/2020	2 December 2010	7.50% p.a.	AA+ CARE RATINGS LIMITED DT 28-09-2010
NASHIK MUNICIPAL CORPORATION	INE579F24065	8.05% UNSECURED RATED LISTED REDEEMABLE NON CONVERTIBLE GREEN MUNCIPAL BOND IN THE NATURE OF DEBENTURE SERIES II STRPP B DATE OF MATURITY 05/03/2030	5 March 2026	8.05	AA+ INDIA RATING AND RESEARCH PVT. LTD DT 14-01-2026
L & T INFRASTRUCTURE FINANCE COMPANY LIMITED	INE691I07166	7.75% Secured Non-Convertible Long term infrastructure bonds in the nature of Secured Redeemable Non Convertible Debenture. Series- 1. Date of Maturity 02/12/2020	2 December 2010	7.75% p.a.	AA+ ICRA LIMITED DT 08-10-2010
PNB HOUSING FINANCE LIMITED	INE572E09262	8.70% UNSECURED REDEEMABLE NON CONVERTIBLE BONDS IN THE NATURE OF PROMISSORY NOTE. SERIES III. LETTER OF ALLOTMENT.DATE OF MATURITY 24/11/2024	24 November 2014	8.70%	AA+ ICRA LIMITED DT 13-11-2014
BANK OF BARODA	INE028A08240	8.15% UNSECURED RATED LISTED SUBORDINATED NON CONVERTIBLE FULLY PAID UP BASEL III ADDITIONAL TIER 1 PERPETUAL BONDS. SERIES XV.	13 January 2021	8.15%	AA+ CRISIL RATINGS LIMITED DT 29-12-2020
L&T FINANCE LIMITED	INE476M08048	9.30% UNSECURED REDEEMABLE NON CONVERTIBLE SUBORDINATE BONDS ELIGIBLE FOR TIER II CAPITAL IN THE NATURE OF DEBENTURES. SERIES J OF FY 2015-16 SUBDEBT. DATE OF MATURITY 24/07/2025	24 July 2015	9.30%	AA+ CARE RATINGS LIMITED DT 08-07-2015

Who Should Invest in AA+ Rated Bonds?

AA+ rated bonds may suit different investors, let's learn who should consider these bonds-

Moderate Risk Investors: Investors who want a balance between safety and higher returns compared to AAA bonds may consider AA+ rated bonds.

Income-Focused Investors: Individuals looking for regular income through interest payouts may find these bonds suitable.

Portfolio Diversifiers: Investors who want to diversify beyond traditional instruments may include AA+ bonds in their portfolio.

Medium to Long-Term Investors: Those with investment horizons aligned to bond tenures can benefit from stable and predictable returns.

Investors Evaluating Credit Risk: Individuals comfortable assessing issuer credibility and credit ratings may consider AA+ bonds for better yield opportunities.

Risks Involved in AA+ Rated Bonds

AA+ rated bonds offer higher returns but involve risks, some of them are mentioned below-

Credit Risk: While AA+ rated bonds are considered safe, they are still subject to the issuer’s financial health. Any downgrade in credit rating can impact the bond’s value.

Interest Rate Risk: If market interest rates rise, the price of existing bonds may fall, especially if sold before maturity.
Liquidity Risk: Some AA+ bonds may have limited trading in the secondary market, making it difficult to exit before maturity.
Credit Rating Downgrade Risk: A downgrade from AA+ to a lower rating can reduce investor confidence and affect the bond’s market price.
Inflation Risk: Fixed returns may lose purchasing power over time if inflation increases significantly.

Tax Applicability on AA+ Rated Bonds

Tax on Interest Income

Interest earned from AA+ rated bonds is taxed under “Income from Other Sources” as per the investor’s income tax slab. TDS may be applicable if the interest exceeds prescribed limits.

Capital Gains Tax on Sale

If the bond is sold before maturity:

Short-Term Capital Gains (STCG): If held for less than 12 months, gains are taxed as per the investor’s income tax slab.
Long-Term Capital Gains (LTCG): If held for more than 12 months (for listed bonds), gains are taxed as per prevailing LTCG rules.

Tax on Maturity

The principal amount received at maturity is not taxed again, but the interest earned during the tenure remains taxable.

Disclaimer

The AA+ rated bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 14 March 2026. Prices, yields, trade values, and other related details are subject to change in real time depending on market movements and liquidity. This content is intended solely for informational and educational purposes and should not be considered as investment advice, recommendation, or an offer to buy or sell any securities.