What Is an Investment Grade?

Investment grade is the credit rating of securities. Because securities investment risks are both large and changeable, investors need an objective and fair credit evaluation. Some securities credit rating agencies have undertaken this business. The two most famous credit rating agencies in the United States are Modi Investor Services and Standard & Poor's. They use a set of scientific methods to assess the credit rating of securities based on the creditworthiness of the issuing company. Generally speaking, securities are broadly divided into investment and speculative classes. ^[1]

Investment grade

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Investment grade is the credit rating of securities. Because securities investment risks are both large and changeable, investors need an objective and fair credit evaluation. Some securities credit rating agencies have undertaken this business. The two most famous credit rating agencies in the United States are Modi Investor Services and Standard & Poor's. They use a set of scientific methods to assess the credit rating of securities based on the creditworthiness of the issuing company. Generally speaking, securities are broadly divided into investment and speculative classes. ^[1]

The credit rating of securities cannot be simply understood as the total credit rating of an issuer, but only the credit rating of a certain securities issue. Therefore, a company that issues securities several times may have several credit ratings. When changes in the financial status of the securities issuer affect investment risk, the credit rating agency shall revise the rated securities credit rating. In addition, it should be noted that the credit rating of securities is limited to securities issued by companies and other companies. Securities issued by the state have the highest credit and there is no question of credit evaluation. ^[1]