What are S&P and Moody's ratings for Investment grade bonds?

S&P and Moody's, two of the major credit rating agencies, have slightly different definitions and scales for investment-grade bonds. Here's a breakdown of their criteria:

1. **S&P Ratings**:
- Investment-grade bonds are rated BBB- or higher by S&P.
- BBB- is the lowest investment-grade rating by S&P, indicating a "speculative" grade but still considered investment-grade.
- A stable outlook is typically assigned to these ratings, indicating a steady credit profile.
2. **Moody's Ratings**:
- Moody's defines investment-grade bonds as those rated Baa3 or higher.
- Baa3 is the lowest investment-grade rating by Moody's, also indicating a speculative grade but with a more stable outlook compared to lower ratings.
- Moody's also uses a scale that includes Aaa (highest) to Baa3 (lowest investment-grade), with each rating level indicating a degree of credit risk.

Both agencies use similar terminology to describe the likelihood of default or the strength of the issuer's financial position. Investment-grade ratings from both S&P and Moody's signify a lower risk of default compared to speculative-grade or junk bonds, which are rated below investment-grade.