Moody’s rating scale

Moody-s rating scales

Moody’s ratings

  • American firm
  • Date of foundation : 1900
  • Turnover: 4.2 billion USD
  • Net income : 1 billion USD
  • Total staff: 12 300 staff members worldwide
  • Presence in 42 countries
  • Market share: 40%

Moody’s rating scale

Moody’s rating scale, which ranges from a maximum Aaa to a minimum C, consists of 21 notches and two categories:

  • Investment category for the financially sound companies.
  • Speculative category for the companies with a higher risk of defaulting.
CategoriesRating symbolsRating notchesComments
InvestmentAaa 
Highest quality, subject to the lowest level of credit risk
AaAa1
High quality, subject to very low credit risk
Aa2
Aa3
AA1
Upper-medium grade, subject to low credit risk
A2
A3
BaaBaa1
Medium-grade, subject to moderate credit risk and may possess certain speculative characteristics
Baa2
Baa3
SpeculativeBaBa1
Judged to be speculative, subject to substantial credit risk
Ba2
Ba3
BB1
Considered speculative, subject to high credit risk
B2
B3
CaaCaa1
Speculative of poor standing and subject to very high credit risk
Caa2
Caa3
Ca 
Speculative and likely in, or very near, default, with some prospect of recovery of principal and interest
C 
The lowest rated and typically in default, with little prospect for recovery of principal or interest

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