Bond Education | Glossary
Moody's Credit Ratings
Moody?s ratings are a measure of long term risk of each issuer?s ability to meet debt payments taking into account changes in management strategy, regulatory trends, and the next economic cycle or longer. Moody's uses a multidisciplinary or "universal" approach to risk analysis, which aims to bring an understanding of all relevant risk factors and viewpoints to every rating analysis. They rely on the judgment of a diverse group of credit risk professionals to weigh those factors in light of a variety of plausible scenarios for the issuer and thus come to a conclusion on what the rating should be.