An invest ment grade rating signifies th e rating AGENCY’s BELIEF that the rated instrument is like ly to meet its payment obligations. In the INDIAN context, debt instruments rated 'BBB' and a bove are cl assified a s investment grade ratings. Instruments that are rat ed ‘BB‘ and below are classi fied as speculative grade CATEGORY ratings in which cas e the abilit y to meet the paym ENT obligatio ns is considered to be “speculative”. Instru ments rated in the speculative grade are considered to carry materially higher risk and a higher probability of default compared to instruments rated in the investment grade.

An invest ment grade rating signifies th e rating agency’s belief that the rated instrument is like ly to meet its payment obligations. In the Indian context, debt instruments rated 'BBB' and a bove are cl assified a s investment grade ratings. Instruments that are rat ed ‘BB‘ and below are classi fied as speculative grade category ratings in which cas e the abilit y to meet the paym ent obligatio ns is considered to be “speculative”. Instru ments rated in the speculative grade are considered to carry materially higher risk and a higher probability of default compared to instruments rated in the investment grade.