Business and Personal Finance Dictionary

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• INVESTMENT-GRADE
  
  Most US corporate and municipal bonds are rated by independent services such as Moody's Investors Service and Standard & Poor's (S&P). The ratings are based on a number of criteria, including the likelihood that the corporation or agency issuing the bond will be able to make interest payments and repay the principal in full and on time. The highest quality bonds-rated BBB and higher by S&P or Baa and higher by Moody's-are considered investment grade. That means their issuers are likely to meet their obligations by paying the interest due and paying off the bonds when they mature.
  
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