Which rating is the lowest that is still considered investment grade according to Standard & Poor's?

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Prepare for the Cannon Trust School Level II Exam with comprehensive multiple-choice questions, flashcards, and explanations to enhance your understanding and boost your confidence for the exam.

Multiple Choice

Which rating is the lowest that is still considered investment grade according to Standard & Poor's?

Explanation:
In Standard & Poor's scheme, investment-grade ratings start at BBB- and go up to AAA. BBB- is the lowest rating that still counts as investment grade, meaning it indicates relatively moderate credit risk but is still considered suitable for investors seeking lower risk. Ratings below BBB- (such as BB or B) are seen as non-investment-grade or speculative, signaling higher risk. Higher grades like AA are stronger, not weaker. So the lowest investment-grade rating is BBB-.

In Standard & Poor's scheme, investment-grade ratings start at BBB- and go up to AAA. BBB- is the lowest rating that still counts as investment grade, meaning it indicates relatively moderate credit risk but is still considered suitable for investors seeking lower risk. Ratings below BBB- (such as BB or B) are seen as non-investment-grade or speculative, signaling higher risk. Higher grades like AA are stronger, not weaker. So the lowest investment-grade rating is BBB-.

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