investment grade

investment grade
Debt (such as a bond or loan) is considered investment grade if its credit rating is BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's or BBB or higher by Fitch. The term indicates that the debt being rated is of sound credit quality. Investment grade debt usually has more favorable terms and lower pricing for the borrower. The opposite of an investment grade bond is a speculative grade bond, also known as a junk bond.

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

Look at other dictionaries:

  • investment-grade — inˈvestment ˌgrade adjective FINANCE investment grade Securities (= shares, bonds etc) are a fairly safe investment because they are quite likely to be repaid: • Philadelphia was able to get investment grade ratings for the issue because money to …   Financial and business terms

  • Investment grade — A bond is considered investment grade or IG if its credit rating is BBB or higher by Standard Poor s or Baa3 or higher by Moody s or BBB(low) or higher by DBRS. Generally they are bonds that are judged by the rating agency as likely enough to… …   Wikipedia

  • Investment grade — Les investment grade correspondent aux obligations émises par les emprunteurs qui reçoivent une note allant de AAA à BBB par les agences de notation, selon l échelle de Standard Poor s. Elles s opposent aux non investment grade , également… …   Wikipédia en Français

  • Investment Grade — A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such as Standard Poor s, use different designations consisting of upper and lower case letters A and B to identify a bond s credit …   Investment dictionary

  • investment grade — A term defined by the Office of Comptroller of the Currency ( OCC) (12 CFR 1) and used in its investment regulation to define eligible investments. Investment grade means a security that is rated in one of the four highest rating categories by… …   Financial and business terms

  • Investment Grade — рейтинг инвестиционного уровня …   Ипотека. Словарь терминов

  • investment-grade — Describing a bond that has been given a relatively high credit rating by a major rating agency, namely Baa and above by Moody s or BBB and above by Standard & Poor s or Fitch s. Lower rated bonds may promise a higher yield but are inherently more …   Big dictionary of business and management

  • investment grade —  Bonds that do not have a high default risk.  ► Corporate and municipal bonds that receive at least a Baa rating from MOODY’S or a BBB rating from STANDARD AND POOR’S agencies …   American business jargon

  • investment grade — …   Useful english dictionary

  • investment-grade debt — ➔ debt * * * investment grade debt UK US noun [U] FINANCE ► the type of bond or other loan that has a low risk of not being paid back: »The company in May sold $3.5 billion of bonds in a record investment grade debt sale, and then issued $1.5… …   Financial and business terms

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