FRM Part I · FRM Exam Part I · External and Internal Credit Ratings
Under the S&P Global Ratings long-term issuer credit rating scale, which of the following is the lowest rating that is still classified as investment grade?
BBB- is the lowest investment-grade rating on the S&P and Fitch scales. Ratings of BB+ and below are speculative grade. BBB+ is investment grade but sits higher than BBB-, so it is not the lowest investment-grade rating.
- ABB+
- BBBB-Correct
- CBBB+
- DB+
Explanation
On the S&P scale (Fitch uses the same letters), the investment-grade categories run from AAA down to BBB-. BB+ and below are speculative grade, often called high yield. BBB+ is investment grade but is not the lowest; BBB- is the lowest.
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