What Moody's Rating Mean?

A rating is Moody's opinion of the credit quality of individual obli- gations or of an issuer's general creditworthiness. ... Moody's credit ratings represent a rank-ordering of creditworthi- ness, or expected loss. Expected loss is a function of the probability of default and the expected severity of loss given a default.

What is a good Moody's rating?

In Moody's Investors Service's ratings system, securities are assigned a rating from Aaa to C, with Aaa being the highest quality and C the lowest quality.

What does a Baa1 Moody's rating mean?

Baa1. The eighth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Baa1 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is A3.