Moody’s Investors Service is the world’s leading provider of credit ratings. Besides, the agency involved in research and forecasts as well as financial market analysis. Moody’s Investors Service has been employing more than 4,500 experts; the company’s branches are situated in 26 countries. It uses more than 40 rating systems such as general credit ratings, industry-specific ratings, national scale ratings, and non-credit ratings. The number of evaluation systems has been growing year after year. Investors around the world are sensitive to the ratings’ updates; they track the Moody’s tools and practices to measure and manage the risk.
For example, the Moody’s long-term ratings are opinions of the relative credit risk of financial obligations with the fixed profit and original maturity of more than a year. They evaluate the debtor’s ability to pay the loan back under implied conditions. Such Moody’s global ratings reflect the possibility of default or other financial losses. Moreover, Moody’s provides the banks’ subordinated debt ratings showing their financial stability and reliability excluding some external credit risks and elements of credit support. Moody’s can give the financial strength rating not only to private banks, but also to other types of financial institutions such as international development banks and government-funded financial institutes.
Moody’s credit ratings:
Each Moody’s generic rating category has its own numerical modifiers from 1 to 3. For example, Ba1, Ba2, and Ba3.