investment grade

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 either:
(1) Two or more nationally recognized statistical rating organizations (NRSROs); or
(2) One NRSRO if the security has only been rated by one NRSRO.
See NRSRO. American Banker Glossary
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bonds which are a very high level of credit quality. A bond rated BBB or above by Standard and Poor's and a bond rated BAA or above by Moody's. Any other bond is known as a junk bond or high yielding bond. Dresdner Kleinwort Wasserstein financial glossary

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   Bonds considered to be safe investments. They carry credit ratings of BBB/Baa or above from the credit rating agencies, who do not consider the issurers likely to default.
   ► See also Junk Bonds.

Financial and business terms. 2012.

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