Which rating is listed as an example of a High Grade Bond?

Which rating is listed as an example of a High Grade Bond?

• A. A1 or A
• B. Baa1 or Baa or BBB+ or BBB
• C. Aa1 or Aa or AA
• D. BBB-

Answer: (C)

High-grade bonds are in the upper tier of investment-grade ratings, signaling strong credit quality and low default risk. The set that includes Aa1 or Aa or AA represents this upper range: Aa1 is a Moody’s high-quality rating just below the top Aaa, Aa is still a very high grade, and AA is the top tier from other major rating agencies. Together, they illustrate the best-end of credit quality. In contrast, A1 or A is solid investment-grade but not as high as Aa/AA; BBB-range (BBBB or Baa) sits lower on the scale and is not considered high grade, and BBB- is at the lower edge of investment-grade territory. Hence, the Aa1/Aa/AA set is the best example of a High Grade Bond.

High-grade bonds are in the upper tier of investment-grade ratings, signaling strong credit quality and low default risk. The set that includes Aa1 or Aa or AA represents this upper range: Aa1 is a Moody’s high-quality rating just below the top Aaa, Aa is still a very high grade, and AA is the top tier from other major rating agencies. Together, they illustrate the best-end of credit quality.

In contrast, A1 or A is solid investment-grade but not as high as Aa/AA; BBB-range (BBBB or Baa) sits lower on the scale and is not considered high grade, and BBB- is at the lower edge of investment-grade territory. Hence, the Aa1/Aa/AA set is the best example of a High Grade Bond.