Moody's rating is mainly aimed at the following types of credit subjects:
1. government: including national and local governments. The rating mainly reflects the government's ability and willingness to repay debts.
2. Companies: including various industrial and commercial enterprises and financial institutions. The rating mainly reflects the company's financial status, operational capacity, industry and market position.
3. Structured financing: including asset-backed securities, mortgage securitization and other products. The rating mainly reflects the quality of the underlying assets and the risk of the transaction structure.
Moody's rating usually takes the form of a combination of letters and numbers, from the highest AAA to the lowest C or below. The meanings of different levels are as follows:
AAA: The highest credit rating, indicating that the bond issuer has strong solvency and extremely low default risk.
AA: A high credit rating means that bond issuers have strong solvency and low default risk.
A: A moderate credit rating means that the bond issuer has good debt repayment ability and the default risk is average.
BBB: A low credit rating means that the bond issuer has a certain debt repayment ability and the risk of default is high.
BB, B, CCC, CC, C: The credit rating is low, indicating that there are serious problems in the ability and willingness of bond issuers to repay debts, and the risk of default is high.
D: Default level, indicating that the bond issuer has defaulted.
In addition, Moody's will also give a "negative", "stable" and "positive" outlook to reflect the future trend of the credit status of bond issuers.
It is worth noting that the credit rating is not static, and Moody's Investors Service will regularly review and update the rating to reflect the changes in the credit status of bond issuers. Therefore, investors should pay attention to the update date and know the latest credit status when referring to Moody's rating.