SIE practice questioneasyCredit Ratings
Which of the following bond ratings is considered investment grade?
- ACCC
- BD
- CBBB✓ Correct answer
- DBB
Explanation
Why C — BBB
Investment grade ratings are BBB/Baa and above (AAA, AA, A, BBB by S&P/Fitch or Aaa, Aa, A, Baa by Moody's). Ratings of BB/Ba and below are considered speculative or 'high yield' (junk). D indicates default. BBB is the lowest investment-grade rating — an important threshold for institutional investors who may be restricted to investment-grade securities.
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