low-grade

low-grade definition - business

low-grade

  1. Of or relating to debt that has a credit rating of B or below. Low-grade debt offers an above-average yield, but entails substantial risk because promised payments may not be made in a timely manner.
  2. Of or relating to a product of inferior quality. For example, a diamond with flaws may be considered low-grade. Likewise, coal with a high sulfur content is considered low-grade.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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