What is Moody's rating?

Moody's rating is a bond credit rating, which is evaluated by Moody's Investment Services. 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.

Moody's rating mainly focuses on the financial situation, industry prospect, management ability, debt structure and other factors of bond issuers to assess their default risk. Moody's rating is usually updated regularly to reflect the changes in the issuer's credit status. For investors, Moody's rating is an indispensable reference information in their investment decisions, because it can help investors understand the credit risk of bond issuers and make more informed investment decisions.

It should be noted that Moody's rating is not the only credit rating agency, and there are other famous credit rating agencies, such as S&; PGlobalRatings) and FitchRatings, etc. These rating agencies all use their own rating systems and standards, but their rating results usually have high reference value.