sub-investment grade loan

sub-investment grade loan
England, Wales
Also known as speculative grade debt. A loan made to a borrower with a poor credit rating. A borrower's credit rating is determined by a rating agency or, in some cases, more than one agency.
Standard & Poor's ratings for sub-investment grade loans range from 'BB+' to 'D'.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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