Which rating category is considered investment-grade?

Which rating category is considered investment-grade?

• A. BBB- and Up
• B. BBB and Up
• C. BB+ and Up
• D. Below BBB- (Speculative-grade)

Answer: (A)

Investment-grade bonds are those considered to have relatively low default risk. On the major rating scales, the threshold is BBB- and all ratings above it (BBB-, BBB, BBB+, A, etc.). So “BBB- and Up” correctly captures the full investment-grade range. Saying “BBB and Up” would miss the BBB- tier, which is still investment-grade, while “BB+ and Up” or “Below BBB-” describe speculative-grade, not investment-grade.

Investment-grade bonds are those considered to have relatively low default risk. On the major rating scales, the threshold is BBB- and all ratings above it (BBB-, BBB, BBB+, A, etc.). So “BBB- and Up” correctly captures the full investment-grade range. Saying “BBB and Up” would miss the BBB- tier, which is still investment-grade, while “BB+ and Up” or “Below BBB-” describe speculative-grade, not investment-grade.