Sub-investment grade bond

Credit ratings - bonds - securities

Sub-investment grade is a range of ratings attributed to a bond (or other security) that is assessed as being speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or S&P (Standard and Poor’s).

Sub-investment grade represents credit ratings which are weaker than investment grade.

In Fitch and S&P's long term rating scales, sub-investment grade is BB and lower.

The equivalent in Moody's long term scale is Ba1 and lower.

Sub-investment grade is also known as 'non-investment' grade, 'speculative' grade, or sometimes 'spec' grade.

See also

• Bond
• Capital
• Corporate credit ratings: a quick guide
• Credit rating
• Credit rating agency (CRA)
• Fitch
• Investment grade
• Moody's
• S&P
• Security