That's not correct. EDIT: The comment I was replying to was deleted. The point I was making is that different tranches in a CDO have different ratings. The low

That's not correct. EDIT: The comment I was replying to was deleted. The point I was making is that different tranches in a CDO have different ratings. The lowest tranche (i.e. the ones that will suffer losses first, commonly referred to as the equity tranche) will effectively be rated as junk, while the top tranche (which would only suffer losses if every single other tranche had been wiped out, often called something like the "super senior" tranche), would be rated AAA.