Investment Grade

Definition:

A term used to refer to a set of Credit Ratings given to securities (and borrowers/issuers) and is a rating of BBB- or higher by Standard & Poor’s or Fitch and a rating of Baa3 or higher by Moody’s. An Investment Grade Credit Rating reflects sound credit quality, and a borrower/issuer may be able to negotiate more favorable terms under a Credit Agreement/Indenture if it has a good Investment Grade.

See also Investment-Grade Bonds.

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