Which rating denotes the highest level of investment-grade status?

The rating that denotes the highest level of investment-grade status is AAA. This rating is assigned by credit rating agencies to indicate that a security has a very low risk of default and is considered to be of the highest quality. An AAA rating reflects a strong capacity to meet financial commitments and indicates that the issuer has a robust financial outlook.

Investment-grade ratings start from AAA and can go down to Baa or other lower ratings, which still signify acceptable investment risk but not at the highest level. The distinction of AAA helps investors make informed decisions, especially those seeking safer investments that are less susceptible to economic downturns.

The other ratings indicate varying levels of investment risk, with A and Baa still being investment-grade but at lower quality tiers compared to AAA. C represents a speculative grade, which is below investment-grade status, indicating a much higher risk level.