What rating typically indicates the highest quality of junk bonds?

The highest quality of junk bonds is typically rated Ba1 or BB+. These ratings indicate that while the bonds are considered below investment grade, they possess a relatively lower risk among junk bonds. Ratings in this range suggest that the issuer has some capacity to meet its financial commitments, but there are uncertainties that may pose risks to timely payments.

Ratings such as AAA signify excellent credit quality, while C or D ratings indicate significant risk of default. Therefore, ratings A or B generally refer to investment-grade bonds, which do not fall under the junk bond category. Thus, Ba1 or BB+ stands out as the answer that highlights the best quality available within the realm of junk bonds.