Which statement about bond credit ratings of S&P/Fitch is true?

Which statement about bond credit ratings of S&P/Fitch is true?

• A. BB or below is investment grade
• B. BBB or above is investment grade
• C. CCC is investment grade
• D. Aaa is investment grade

Answer: (B)

In S&P and Fitch’s rating system, investment-grade bonds are those rated BBB- (the lowest investment-grade level) and above. That means BBB or higher is considered investment grade. The other statements don’t fit: BB or below sits below the investment-grade threshold, CCC is well below investment grade, and Aaa is a Moody’s label, not used by S&P/Fitch (their top rating is AAA). So the true statement is that BBB or above is investment grade.

In S&P and Fitch’s rating system, investment-grade bonds are those rated BBB- (the lowest investment-grade level) and above. That means BBB or higher is considered investment grade. The other statements don’t fit: BB or below sits below the investment-grade threshold, CCC is well below investment grade, and Aaa is a Moody’s label, not used by S&P/Fitch (their top rating is AAA). So the true statement is that BBB or above is investment grade.