He published the viewpoint of bond credit rating in the book Railway Investment Analysis published by 1909, which made the credit rating enter the securities market for the first time. He pioneered the practice of distinguishing 90 kinds of bonds issued by 250 companies with simple credit rating symbols. It is this practice that distinguishes credit rating agencies from ordinary statistical agencies, so it is generally believed that credit rating originated from Moody's railway bond credit rating.
19 13 years, Moody's extended its credit rating to public utilities and industrial bonds, and created a third-party independent credit rating or unauthorized credit rating method by using public information. In the past, Moody's rating and research mainly focused on corporate and government debt, institutional financing securities and commercial paper. In recent years, Moody's began to rate securities issuers, insurance company debts, bank loans, derivatives, bank deposits and other bank debts, and manage funds.
Introduction to Moody's Rating:
Moody's rating is a bond credit rating, which is evaluated by Moody's Investors Service Company. Moody's Investors Service is a credit rating agency headquartered in the United States, which specializes in providing credit rating, research and analysis services for bonds and other fixed-income securities. Moody's rating aims to help investors assess the credit risk of bond issuers in order to make more informed investment decisions.
Moody's rating adopts a rating system consisting of letters and numbers, from the highest level of Aaa (indicating the minimum credit risk) to the lowest level of C (indicating the maximum credit risk). Between aaa and C, there are many different grades, such as Aa, Ba, Caa and so on. In addition to the letter rating, Moody's rating also includes the numbers 1, 2, 3 and so on. Used to represent different sub-levels in the same credit rating. For example, Aa 1 indicates that the credit risk is slightly lower than Aa, and Aa2 indicates that the credit risk is slightly higher than Aa.