Standard & Poors Ratings Are Grouped into Two Major Categories

question 12

Short Answer

Standard & Poors ratings are grouped into two major categories, investment-grade and speculative- grade.Bonds that are rated (i) are included in the investment-grade group, while speculative-grade bonds are those rated (ii) .
$$\begin{array} { l l l } & { \text { (i) } } &{ \text { (ii) } } \\\text { a. } & \text { AAA, AA, A } & \text { BBB, BB, B, CCC, CC, C } \\\text { b. } & \text { AAA, AA, A, BBB } & \text { BB, B, CCC, CC, C } \\\text c.&{ AAA, AA, A, BBB, BB } & \text { B, CCC, CC, C } \\\text d.&{ AAA, AA, A, BBB, BB, B } & \text { CCC, CC, C }\end{array}$$

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