Company Profile

Moody's Investors ServiceMoody's Investors Service, often referred to asMoody's, is thebond credit ratingbusiness ofMoody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research onbondsissued by commercial and government.The company ranks thecreditworthinessof borrowers using a standardized ratings scale which measures expected investor loss in the event ofdefault. Moody's Investors Service ratesdebt securitiesin several market segments related to public and commercial securities in thebond market. These includegovernment,municipalandcorporate bonds; managed investments such asmoney market funds, fixed-income funds andhedge funds; financial institutions including banks and non-bank finance companies; and asset classes instructured finance. 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.Moody's was founded byJohn Moodyin 1909 to produce manuals of statistics related to stocks and bonds andbond ratings. In 1975, the company was identified as aNationally Recognized Statistical Rating Organization(NRSRO) by theU.S. Securities and Exchange Commission. Following several decades of ownership byDun & Bradstreet, Moody's Investors Service became a separate company in 2000; Moody's Corporation was established as a holding company.

Moody's credit ratingsAccording to Moody's, the purpose of its ratings is to "provide investors with a simple system of gradation by which future relative creditworthiness of securities may be gauged". To each of its ratings from Aa through Caa, Moody's appends numerical modifiers 1, 2 and 3; the lower the number, the higher-end the rating. Aaa, Ca and C are not modified this way. As Moody's explains, its ratings are "not to be construed as recommendations", nor are they intended to be a sole basis for investment decisions. In addition, its ratings dont speak to market price, although market conditions may impact credit risk.Standard & Poor'sStandard & Poor's Financial Services LLC(S&P) is an Americanfinancial servicescompany. It is a division ofMcGraw Hill Financialthat publishes financial research and analysis onstocksandbonds. S&P is known for itsstock market indicessuch as the U.S.-basedS&P 500, the CanadianS&P/TSX, and the AustralianS&P/ASX 200. S&P is considered one of theBig Threecredit-rating agencies, which also includeMoody's Investor ServiceandFitch Ratings.It has 26 offices around the world, and the head office is located on55 Water StreetinLower Manhattan,New York City. Standard & Poor's Ratings Services publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities. In 2013, it rated $6.6 trillion in new debt.As acredit-rating agency (CRA), the company issues credit ratings for the debt of public and private companies, and other public borrowers such as governments and governmental entities. It is one of several CRAs that have been designated anationally recognized statistical rating organizationby theU.S. Securities and Exchange Commission.Long-term credit ratingsThe company rates borrowers on a scale from AAA to D. Intermediate ratings are offered at each level between AA and CCC (e.g., BBB+, BBB and BBB-). For some borrowers, the company may also offer guidance (termed a "credit watch") as to whether it is likely to be upgraded (positive), downgraded (negative) or uncertain (neutral).

HistoryThe company traces its history back to 1860, with the publication byHenry Varnum PoorofHistory of Railroads and Canals in the United States. This book compiled comprehensive information about the financial and operational state of U.S. railroad companies. In 1868, Henry Varnum Poor establishedH.V. and H.W. Poor Co.with his son,Henry William Poor, and published two annually updated hardback guidebooks,Poor's Manual of the Railroads of the United StatesandPoor's Directory of Railway Officials. In 1906, Luther Lee Blake founded theStandard Statistics Bureau, with the view to providing financial information on non-railroad companies. Instead of an annually published book, Standard Statistics would use 5" x 7" cards, allowing for more frequent updates. In 1941, Poor's Publishing and Standard Statistics merged to becomeStandard & Poor's Corp.In 1966, the company was acquired by The McGraw-Hill Companies, extending McGraw-Hill into the field of financial information services