Timeform raised Baaeed's rating to 137 following his breathtaking win in the Juddmonte International at York.
The Shadwell Estates-owned colt was on 134 going into York and now sits three pounds below his own sire Sea The Stars.
Timeform Flat Editor David Johnson said: "The Juddmonte International has proven more of a king-making race than any other in Britain since the turn of the century, with no less than eleven horses breaking the 130 barrier that Timeform believe to be that of a top-class racehorse.
"Though few have shown themselves capable of what Baaeed did on his first start at beyond a mile in beating last year’s winner Mishriff by six-and-a-half lengths.
A provisional rating of 137 is the second-highest put up in the race this century, splitting those of Frankel (143+) in 2012 and Sakhee (136) in 2001.
"Although his career is likely to conclude in following the same path as the former, at Timeform, we’d firmly be in favour of him instead bidding to emulate the latter in the Arc."
David Cleary was the firm's on-course reporter on Wednesday and said: "I've been covering racing on course for Timeform since 1985 and Baaeed's brilliant performance at York is one of the very best I've seen on the Flat in all that time, cruising all the way, the effort franked by a stunning turn of foot for a middle-distance runner."
More from Sporting Life
Safer gambling
We are committed in our support of safer gambling. Recommended bets are advised to over-18s and we strongly encourage readers to wager only what they can afford to lose.
If you are concerned about your gambling, please call the National Gambling Helpline / GamCare on 0808 8020 133.
Further support and information can be found at begambleaware.org and gamblingtherapy.org.