A bond is considered investment grade or IG if its credit rating is BBB− or higher by Fitch Ratings or S&P, or Baa3 or higher by Moody's, the so-called "Big Three" credit rating agencies. Generally they are bonds that are judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in them.

Jun 19, 2024 · Credit ratings for bonds below these designations ("BB," "B," "CCC," etc.) are considered low credit quality and are commonly referred to as junk bonds. An investment grade rating signals...

Fitch’s credit rating scale for issuers and issues is expressed using the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade) with an additional +/- for AA through CCC levels indicating relative differences of probability of default or recovery for issues.

Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds.

Jul 19, 2024 · BBB/Baa are the lowest ratings that qualify for commercial bank investments. It's a borderline group for which, in Standard & Poor's words, adverse economic conditions or changing circumstances...

A BB credit rating refers to a rating assigned by Standard & Poor's and Fitch credit agencies to indicate creditworthiness of a bond-issuer, such as a corporation or a government, and the likelihood of default on its bonds.

Aug 18, 2023 · Investment grade refers to the quality of a company's credit. To be considered an investment grade issue, the company must be rated at 'BBB' or higher by Standard and Poor's or 'Baa" or higher...

Nov 9, 2023 · Investment grade bonds are assigned “AAA” to “BBB-" ratings from Standard & Poor's and Fitch, and "Aaa" to "Baa3" ratings from Moody’s. Junk bonds have lower ratings. The higher a bond's rating,...

Oct 12, 2017 · Credit ratings usually appear in the form of alphabetical letter grades (for example, ‘AAA’ and ‘BBB’) and are an estimate of the relative level of credit risk of a bond or a company or government. Credit ratings are issued by third parties and …

Good credit quality 'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.