The term "BBB-" refers to a credit rating assigned by agencies like Standard & Poor's and Fitch Ratings. It indicates a medium credit quality, suggesting that the borrower has a moderate capacity to meet financial commitments. While it is considered investment-grade, it is just one notch above speculative grade, meaning there is a higher risk of default compared to higher-rated entities. Investors often use the BBB- rating to assess the risk associated with bonds or other debt instruments. A BBB- rating can influence interest rates, as lower-rated bonds typically offer higher yields to attract investors willing to take on more risk.