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Moody’s is the name given to Moody’s Corporation which is the holding company for Moody’s Investor Services and Moody Analytics. Moody was founded in 1909 by John Moody and is head quartered in New York City, United States.
Moody’s investor service is an unaffiliated research company that assigns ratings to Fixed Income Security in several market segments. Ratings are given based on the risks associated with the bonds and the ability of the issuer to pay back the interest. Moody also claims to back these ratings with exhaustive and unbiased financial research. These ratings provide a basis or simple gradation system for the investor to predict the future creditworthiness of the securities.
Moody’s ratings are ranked as follows:
Aaa (Highest grade and hence lowest risk), Aa, A, Baa (Medium grade), Ba, B, Caa, Ca, C
All the bonds having ratings on and above Baa are called investment grade securities and below are called non-investment grade securities.
Moody Analytics is a division of Moody’s Corporation responsible for performing economic research related to credit analysis, financial modeling, structured analysis, etc.