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SIE: Debt Securities
SIE practice questionmediumBond Ratings

Which of the following S&P ratings is considered below investment grade?

  1. AAA
  2. BBBB
  3. CA
  4. DBB+✓ Correct answer
Explanation

Why DBB+

BB+ is speculative (“junk”) grade. BBB and higher are investment grade, with increasing safety as ratings rise.

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