Definitions for "Investment grade"
Related Terms:
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A rating is expressed in a combination of alphanumeric symbols and represents a company's credit standing as assessed by the rating agency. Ratings can be roughly dividend into two categories: "Investment grade" (adequate protection) and "Non-investment grade" (specultative).
A bond whose credit quality is considered to be among the highest by independent bond-rating agencies.
a rating given to a bond-issuing company by private ratings companies, according to its financial situation and performance.
Describes the top four rating categories of relatively secure bonds suitable for a conservative investor. Standard & Poor's rating service looks upon all bonds between the AAA and BBB ratings as investment grade. Generally speaking, any bonds rated below BBB are considered to have speculative features and are deemed sub-investment grade or junk bonds.
Bonds rated BBB (Baa) or higher by Standard & Poor's Corporation and Moody's Investment Services. Investment grade bonds are higher quality than high yield bonds and have lower credit risk.
Bonds which are rated BBB or above by the credit rating agencies and are considered to be safe investments, in that the agencies do not anticipate that the issuers are likely to default at the time the rating is issued.
Bonds which are a very high level of credit quality. A bond rated BBB or above by Standard and Poors and a bond rated BAA or above by Moodys. Any other bond is known as a Junk Bond or High Yielding Bond.
Refers to a bond with a rating of AAA to BBB. (See also: Junk Bonds)
Bonds rated in the top four rating categories ("AAA," "AA," "A," "BAA") are commonly known as investment grade securities and are considered eligible for bank investment under present commercial bank regulation issuer by the Comptroller of the Currency.
High quality bonds that are rated Baa or higher by Moody's, or BBB or higher by Standard & Poor's. Investment grade bonds are considered safe, because the rating reflects the perceived financial stability of the issuer. Usually, however, the higher the bond's rating, the lower the interest it must pay to attract buyers.
(1) an investment situation in which a firm has a strong balance sheet, considerable capitalization, and continuous dividends, and is recognized as a leader in its industry. (2) bond rating of BAA/BBB or higher; indicates investment-grade quality.
Bonds issued by solid, well financed companies with a very small possibility of default. Good quality arid only slightly more risky than government bonds.
Bonds currently rated in the top four categories by Moody's (Baa3 or higher) or by Standard and Poor (BBB- or higher).
Bonds designated by Moody's Investors Service or Standard & Poors in their top four categories.
Bonds that are of a high level of credit quality. A bond rated BBB or above by Standard & Poors and rated Baa by the Moody's credit rating agency would qualify as investment grade.
A minimum level of quality suitable for the majority of investors. Bonds below investment grade are likely to offer the potential for greater returns but carry considerably more risk or default or currency risk. Investment grade is defined as issues rated Baa or higher by Moody's and BBB or higher by Standard & Poor's.
A bond that is rated within the top four categories by Moody's or Standard & Poor's.
Debt securities rated BBB or better by Standard & Poor's or Baa or better by Moody's Investors Service.
The two major credit rating services rate bonds as to their credit worthiness. Bonds that are rated at or above "Baa" by Moody's, or "BBB" by S&P are said to be investment grade bonds. Bonds rated lower than these ratings are said to be high yield ( junk) bonds.
Rated "BBB" or above by Standard & Poor's and/or "Baa" or above by Moody's.
a bond whose credit quality is considered to be the most secure by an independent credit-rating agency. Investment Policy- a formal statement outlining the broad investment objectives of a plan.
Bond issues that the three major bond rating agencies, Moody's, Standard & Poor's, and Fitch rate BBB or Baa or better. Many fiduciaries, trustees, and some mutual fund managers can only invest in securities with an investment grade rating.
Bonds whose issuers are rated AAA to BBB for safety and ability to repay principal by Standard & Poor’s or Moody’s Investors Service.
Bonds considered suitable for preservation of invested capital by the various rating agencies and rated Baa or BBB or above
A bond that is assigned a rating in the top four categories by commercial credit rating companies. Related: High-yield bond
Bonds that are rated within one of the top four ratings categories.
Refers to bonds rated in the top four rating categories by Moody's or Standard & Poors which are eligible for investment by fiduciaries. See: Legal List.
The two major rating agencies, Moody's Investors Service and Standard & Poor's, evaluate the financial strength of bond issuers and assign safety ratings to them. Bonds rated at or above "Baa" by Moody's Investors Service, or "BBB" by Standard & Poor's are referred to as investment grade bonds. Bonds that are rated lower are commonly referred to as junk bonds.
A bond whose credit quality is considered to be among the most secure by any independent bond-rating agency. A rating of Baa or higher by Moody's Investors Service or a rating of BBB or higher by Standard & Poor's is considered investment grade.
Bonds considered suitable for preservation of invested capital; ordinarily, those rated BAA or better by Moody's Investors Service, or BBB or better by Standard & Poor's Corporation. See "Ratings."
A bond with a rating of AAA to BBB, as contrasted with a junk or non-investment grade bond. See also: Bond Ratings.
Investment-grade obligations are those rated at the time of purchase AAA, AA, A or BBB by S&P, Aaa, Aa, A or Baa by Moody's or which are similarly rated by another nationally recognized statistical rating organization or are unrated but deemed by the Adviser to be comparable in quality to instruments that are so rated.
High quality bonds that are rated at least BBB by Standard & Poor's.
An investment rating level of BBB- or better from Standard & Poor's Corporation or Baa3 or better from Moody's Corporation.
An investment grade bond is rated a minimum of BBB (or equivalent) by a rating agency, with AAA being the highest grade. Bonds rated below BBB are generally classified as being speculative grade and carry higher levels of credit risk than investment grade bonds (i.e., they have a higher probability of default on interest or principal payments).
1. In the case of a stock, a firm that has a strong balance sheet, considerable capitalization, and is recognized as a leader in its industry. 2. In the case of fixed income, a bond with a rating of BBB or higher.