A grade for securities (debt securities such as bonds or notes) having a short term rating of at least A-1 or P1 or long term rating of at least A3 or A- / Baa3/ BBB- or better (whichever is applicable) at the time of acquisition by the investor/ investing company, on a scale set by Standard & Poor’s and/ or Moody’s Investor Services Inc. or an equivalent rating by a comparable rating agency.

Investment grade securities carry lower risk-return (lower risk of default and lower yield) compared to non-investment grade securities (high-yield or junk securities).