Identifying Lower Credit Risk in Bonds

Credit ratings are assessments provided by independent agencies that evaluate the creditworthiness of issuers of debt securities. These ratings inform investors about the risk associated with investing in a particular bond or debt instrument. Generally, ratings range from 'AAA' for the highest quality and lowest risk to 'D' for default. Understanding credit ratings is crucial for investors looking to balance yield and risk.

Which of the following credit ratings corresponds to a lower credit risk and a higher quality bond?