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Moody’s credit rating is basically a credit rating company which actually helps the investors decide whether they should be making investments in the security of a particular company or not. The following are some of the key facts relating to Moody’s credit ratings:

1. Moody ratings company was started in 1909 by John Moody and today, after almost a century, it has grown to become one of the best credit rating companies in the world along with Standard & Poor’s and Fitch.

2. There are basically rating symbols given by the company to judge the worthiness of the company’s share which includes the future performance of the company as well as the interest paying pattern and style in the past. The ratings are like Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C in which Aaa means the best and C means the worst.

3. There are some companies to which the Moody’s credit rating company might not have assigned any rating or might have withdrawn its previous rating. This means that the company is no more interested in getting rated by Moody’s. It does not by any chance means that the company is the worst company or it has been not doing well as a company.

4. Some of the reasons for a company not getting any ratings from Moody’s could be the following:

a. There was no application from the company for credit rating received by Moody’s.

b. The company might have been securities which are not eligible for rating or which cannot be rated as per the company’s policies.

c. The data provided by the company to Moody’s in the application is not good enough to process the credit rating for them.

d. If the credit rating issue for the company is not meant for public view and it ahs to be kept confidential.

5. The credit rating given by Moody’s to a company is not fixed in nature and it would change over a period of time depending on the performance of the company.

6. The credit rating of the highest quality does not necessarily mean the company is the best in the business but it definitely means that it is close to being the best.

7. An investor looking for investment options should not just depend on the credit ratings of a particular company. There are various other things along with the credit rating that needs to be determined before making a wise investment decision.