Moody's Long-term Corporate Obligation Rating

Definition:

Moody's Long-term Corporate Obligation Ratings are opinions of the relative credit risk of fixed-income obligations with an original maturity of 1 year or more. The ratings reflect both the likelihood of default and any financial loss suffered in the event of default. Moody's rating is widely used in the financial world along with S&P Ratings.
The rating scale is as follows:
Moody's Investment Grade: AaaAa1Aa2Aa3A1A2A3Baa1Baa2Baa3
Moody's Speculative Grade: Ba1Ba2Ba3B1B2B3Caa1Caa2Caa3CaC

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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