Investment grade - A credit rating given to a government or coporate bond which indicates that the agency giving the rating (Standard & Poor"s, Moody"s or Fitch) thinks the issuer has strong creditworthiness.The grades used by two of the leading agencies are as follows:Moody"s Aaa / S&P AAAThe highest-quality, lowest-risk bondsMoody"s Aa / S&P AAHigh-quality debt obligations with minimal repayment riskMoody"s A / S&P AQuality bonds with a strong capacity to pay interest and principal which are somewhat susceptible to adverse economic conditionsMoody"s Baa / S&P BBBQuality bonds with a adequate capacity to pay interest and principal which are more vulnerable to adverse economic conditions bondsMoody"s Ba / S&P BBMedium-grade bonds with few desirable characteristicsMoody"s B / S&P BSpeculative bonds with a major degree of risk in adverse economic conditionsMoody"s Caa / S&P CCCIssuers in poor standingMoody"s Ca / S&P CCIssuers may be in defaultMoody"s C / S&P CIncome bonds on which no interest is being paidS&P DBonds in default All those at Baa/BBB or above are adjudged "investment grade".
Investment grade : a credit rating given to a government or coporate bond which indicates that the agency giving the rating (standard & poor"s, moody"s or fitch) thinks the issuer has strong creditworthiness.the grades used by two of the leading agencies are as follows:moody"s aaa / s&p aaathe highest-quality, lowest-risk bondsmoody"s aa / s&p aahigh-quality debt obligations with minimal repayment riskmoody"s a / s&p aquality bonds with a strong capacity to pay interest and principal which are somewhat susceptible to adverse economic conditionsmoody"s baa / s&p bbbquality bonds with a adequate capacity to pay interest and principal which are more vulnerable to adverse economic conditions bondsmoody"s ba / s&p bbmedium-grade bonds with few desirable characteristicsmoody"s b / s&p bspeculative bonds with a major degree of risk in adverse economic conditionsmoody"s caa / s&p cccissuers in poor standingmoody"s ca / s&p ccissuers may be in defaultmoody"s c / s&p cincome bonds on which no interest is being paids&p dbonds in default all those at baa/bbb or above are adjudged "investment grade".
Investment grade