Moody's Credit Research Service Makes for Informed Decisions
As shifts in world capital market behavior and new circumstances affect areas of credit risk analysis, market participants need fresh, authoritative thinking about fundamental issues. Mindful of these changing dynamics, a rating agency must regularly monitor and evaluate conditions that may change its analysis or alter its rating methodology.
Moody's ratings are monitored constantly with adjustments made whenever our rating committees conclude that there has been a material change in an issuer's long-term credit risk. Fundamental changes in credit risk are also communicated to the markets through press releases, electronic research services, and personalized briefings and teleconferences with Moody's research clients.
To further assure timeliness, Moody's research reports on thousands of individual credits and industry sectors are kept current electronically and updated when ratings change.
In complex and increasingly volatile markets, sophisticated credit analysis can be a complicated and costly exercise - all the more costly if that understanding proves to be flawed. Moody's ratings and in-depth research services provide a sound basis for understanding and managing financial risk in the context of today's - and tomorrow's - market realities.
In any given year, some 10 percent of Moody's ratings are adjusted to reflect fundamental changes in credit risk. Our ongoing studies of rating transitions provide capital market participants with indications of the probability that an issuer at any given rating level will be upgraded to any higher rating or downgraded to any lower rating.