Bank Rating Methodology
On 16 March 2015, we updated our Bank Rating Methodology. On this page, you will find tutorials, videos and more to walk you through the methodology.
Baseline Credit Assessment
Our Baseline Credit Assessment (BCA) is our opinion of the probability of a bank’s standalone failure absent external support. Our BCA analysis involves three main components: a macro profile, financial factors and qualitative factors.
MACRO PROFILE
An assessment of the bank’s operating environment.

FINANCIAL PROFILE
Predictive measures of solvency and liquidity.

QUALITATIVE FACTORS
Adjusting the financial profile by incorporating relevant factors.

BCA
A measure of default probability excluding external support.
Support & Structural Analysis
Our Support & Structural Analysis assesses not only the probability of extending support, but also incorporates a
new liquidity-side analysis considering the impact of a
failure on different creditor classes.
AFFILIATE SUPPORT
Adjusting the BCA to incorporate support from affiliated entities.

ADJUSTED BCA
A measure of the probability that a bank will require support to avoid default beyond the support provided by its affiliates.

LOSS GIVEN FAILURE
A liability-side analysis that assesses the impact of a failure – in terms of the potential loss on rated debt and deposits.

GOVERNMENT SUPPORT
Our judgment about the probability of a government to provide support.


FINAL CREDIT RATINGS
COUNTERPARTY RISK ASSESSMENT
An assessment of an issuer’s ability to avoid defaulting on its operating – i.e., non-debt or non-deposit – obligations

The full Bank Methodology offers greater insight into the details of each analytical component.

Case Study

Resources

Featured Videos
*These videos were recorded in September 2014 during the Request for Comment period. On 16 March 2015, Moody's Investors Service released the new Bank Rating Methodology largely incorporating the approach described in the Request for Comment. The explanations provided in the videos apply to the new methodology.


Need More Information?
If you require more information, then you can reach our specialists through the numbers below.

Investors
Americas
+1.212.321.6549

Asia Pacific
+852.3551.3077
Japan
+81.3.5408.4100

EMEA
+44 (0) 207.772.1900

Media
Americas
+1.212.553.0376

EMEA
+44 (0) 207.772.5456
Asia Pacific
+852.3758.1350