This term is primarily used in reference to bonds, although it probably does apply in other categories as well.
In the bond market, companies and governments issue promises to pay back a certain amount at a certain rate on a certain schedule. They are usually, but not always, given ratings by theoretically independent ratings services such as S&P, Moody's and Fitch's.
I say theoretically because of the scandal exposed during the Great Recession in which some ratings agencies manipulated their ratings for pay. Supposedly that's all fixed now.
The ratings start at AAA+, then AAA, then AAA-, then through the B's in the same way, and finally one C and one D.
Investment grade is AAA+ down through BBB- in most circumstances, with BB+ down through B- as "Below Investment Grade" (e.g. riskier), with C as "Junk Bond" and "D" as "already defaulted".
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