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
Baa - medium grade, moderate risk
Caa - Poor grade, high risk
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