Bond rating refers to the method of evaluating the possibility of default by a bond issuer, such as a corporation or government body. Prominent agencies like Fitch Ratings, Standard & Poor's, and Moody's assess the financial strength of issuers and provide ratings that range from AAA (highly unlikely to default) to D (in default). Bonds rated BB or below are considered non-investment grade.
Moody's Investment Grade ratings, provided by Moody's Investors Service, play a crucial role in evaluating the creditworthiness of municipal short-term debt securities. These ratings help investors and financial institutions make informed decisions by classifying securities as MIG-1, 2, 3, and 4 to signify best, high, favorable, and adequate quality, respectively. All these ratings are considered investment grade or bank quality.
Moody's Investors Service is a preeminent financial services company headquartered in downtown Manhattan. It stands among the three most well-known bond-rating agencies in the United States, alongside Fitch Ratings and Standard & Poor's.
