Moody's

AAA

DEFINITION of 'Moody's'

An independent, unaffiliated research company that rates fixed income securities. Moody's assigns ratings on the basis of risk and the borrower's ability to make interest payments. Moody's backs its ratings with exhaustive financial research and unbiased commentary and analysis.

INVESTOPEDIA EXPLAINS 'Moody's'

Many bond investors pay close attention to the rating Moody assigns to bonds and preferred stock. Moody's ratings are ranked as follows:

Aaa - highest grade, best quality issuer, lowest risk
Aa
A
Baa - medium grade, moderate risk
Ba
B
Caa - Poor grade, high risk
Ca
C

RELATED TERMS
  1. A.M. Best

    One of the established ratings agencies recognized by the SEC. ...
  2. Nationally Recognized Statistical ...

    The formal term to describe credit rating agencies that provide ...
  3. Standard & Poor's - S&P

    The world's leading index provider and the foremost source of ...
  4. Moody's Bond Survey

    A weekly publication that reports changes in corporate bond quality ...
  5. Fixed Income

    A type of investing or budgeting style for which real return ...
  6. Corporate Bond

    A debt security issued by a corporation and sold to investors. ...
Related Articles
  1. Junk Bonds: Everything You Need To Know
    Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

  2. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  3. The Debt Ratings Debate
    Personal Finance

    The Debt Ratings Debate

  4. A Brief History Of Credit Rating Agencies
    Home & Auto

    A Brief History Of Credit Rating Agencies

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center