Investment grade bonds are rated by Standard and Poor's (Moody's) with which of the following designations?

Investment grade bonds are classified as those that have a credit rating of BBB (Baa) or higher by Standard and Poor's and Moody's, respectively. This rating signifies that these bonds are considered to have a relatively low risk of default and are more likely to meet their financial obligations.

Bonds rated BBB/Baa or higher are suitable for conservative investors seeking stable income with an acceptable level of risk. Ratings below this threshold, such as BB (Ba), are classified as non-investment grade and carry a higher risk of default, making them less attractive to risk-averse investors.

Overall, the classification system helps investors make informed decisions based on the creditworthiness of the issuers and the associated risks.