"Sub-Investment Grade" or "Junk"

Yes, a BBB bond or higher (such as A, AA or AAA) are investment grade. Many investors cannot invest in sub-investment grade (BB or lower).

Investment grade is when a bond credit rating accesses the credit worthiness of a corporation's debt issues. A bond is considered investment grade if the credit rating is BBB- or higher.

The rating bands issued by the rating agencies are grouped as follows:

1. Prime Investment Grade

2. High Investment Grade

3. Medium Grade

4. Speculative/Risky

5. High Risk

6. In Default