Which rating would be considered investment-grade?

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Multiple Choice

Which rating would be considered investment-grade?

Explanation:
The concept tested is credit quality and what counts as investment-grade. Investment-grade bonds are those rated high enough by major rating agencies to be considered relatively safe, with lower credit risk. AAA is the top rating, signaling extremely strong ability to meet financial obligations, so it clearly qualifies as investment-grade. Ratings like BB, CCC, and D indicate progressively higher risk and are not considered investment-grade—the lower the rating, the greater the likelihood of default.

The concept tested is credit quality and what counts as investment-grade. Investment-grade bonds are those rated high enough by major rating agencies to be considered relatively safe, with lower credit risk. AAA is the top rating, signaling extremely strong ability to meet financial obligations, so it clearly qualifies as investment-grade. Ratings like BB, CCC, and D indicate progressively higher risk and are not considered investment-grade—the lower the rating, the greater the likelihood of default.

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