A credit rating is Standard & Poor’s opinion of the general creditworthiness of an obligor, or the creditworthiness of an obligor with respect to a particular debt security or other financial obligation, based on relevant risk factors. A rating does not constitute a recommendation to purchase, sell, or hold a particular security. In addition, a rating does not comment on the suitability of an investment for a particular investor.
The Big Three
The Big Three By 2008 Results
Standard & Poor's
Market share in 2007
Source: DER SPIEGEL 19/2008
Founder: John Moody (1868 - 1958)
1900: John Moody & Company is founded and Moody's Manual of
Securities is published. The manual provided information and statistics on stocks and bonds of financial institutions, government agencies, manufacturing, mining, utilities, and food companies.
John Moody returned to the financial market in 1909 with a new idea: instead of simply collecting information on the property, capitalization, and management of companies, he now offered investors an analysis of security values. His company would publish a book that analyzed the railroads and their outstanding securities. It offered concise conclusions about their relative investment quality.
On July 1, 1914, Moody's Investors Service was incorporated. That same year, Moody began expanding rating coverage to bonds issued by US cities and other municipalities. By 1924, Moody's ratings covered nearly
100 percent of the US bond market.
Source: Moody’s Investors Service
Higher medium Grade