After several years of economic contraction, the euro area — still the second largest economic area after the US — returned to growth during the second half of 2013. This was the result of significant structural adjustment across the euro area periphery, institutional reform at the European Union and euro area levels and of a related reduction of market stress. However, growth is expected to be subdued for the foreseeable future, reflecting still large stocks of public debt, restrictive financing conditions and pre-existing long-term structural constraints (notably, poor demographic prospects). Given these obstacles, as well as the still incomplete nature of the euro area’s economic union, it is clear that the future growth model of the European Union and its core, the euro area, faces challenges. This page provides a centralized source for Moody’s research related to key credit issues concerning these matters.
On July 18 Moody’s moved the outlook on the US government back to stable and affirmed the Aaa rating. The action reflects Moody’s assessment that the federal government’s debt trajectory is on track, at least through 2018, to meet the criteria laid out in August 2011 for a return to a stable outlook. This page provides a centralized source for Moody’s research related to credits with both direct and indirect linkages to the U.S. fiscal outlook.
China is embarking on a structural shift in its economy away from investment and exports, and towards a consumption-driven growth model. Reform and rebalancing will present both opportunities and challenges for domestic credit, as well as the wider emerging markets universe. Meanwhile, China and emerging markets in Europe, Asia, Latin America and Africa are becoming increasingly influential forces in the global economy. This page provides a centralized source for Moody’s research related to key credit issues in China and major emerging markets.
Pension and healthcare costs represent a growing, fundamental credit challenge for many governments and corporations as the world's population ages. These benefits were developed decades ago when demographics were tilted toward younger workers rather than retired beneficiaries. Driven by increases in longevity and lower birth rates in the intervening decades, the share of population aged 60 or older is growing rapidly across the OECD and many other nations, including China. Governments are increasingly struggling to afford their social security safety net promised to older citizens and retired employees. Many corporations see threats to their future credit strength unless they generate new revenues to pay for promised benefits or make hard decisions to cut worker benefits. The credit quality of large public and private sector organizations has already been stressed by pension and health care risks. These risks are likely to increase for many in coming years.
Progress toward a Banking Union for the euro area has multiple implications for bank credit, systemic risk and the health of the regional economy, to which banks are the primary providers of financing. In November 2014, the European Central Bank (ECB) will become the Single Supervisor for the euro area, directly responsible for the day-to-day supervision of more than 120 banking institutions. Meanwhile, political and technical discussions continue regarding a centralized bank resolution process for the region, which will likely include the “bail-in” of creditors. Two topics of particular interest in early 2014 are the Asset Quality Review (AQR) and subsequent Stress Tests to be conducted by the ECB, in coordination with national supervisors and the European Banking Authority, as part of a Comprehensive Assessment to help improve banks’ financial footing and restore market confidence. This page highlights key Moody’s research on the credit implications for Euro Area banks and their creditors.
Since its creation in 2002, Moody's Accounting Specialist Group has worked alongside Moody's credit analysts to incorporate accounting, financial reporting and internal control practices more systematically into the credit rating process. The group publishes research comments on issues within its area of expertise which Moody’s believes impact rated issuers’ credit quality. The group also conducts training for Moody’s analysts on relevant financial reporting, accounting and internal control issues which impact ratings. The Accounting Specialist Group is part of broader initiative to bring specialized expertise to Moody’s credit rating process. Along with specialists in accounting, financial reporting and internal controls, Moody’s Enhanced Analytic Group also has specialists with expertise in corporate governance; risk management; and complex financial instruments.
Investors have become increasingly concerned about event risk and the absence of meaningful covenant protections, which leaves them exposed to potential credit losses. Moody's covenant snapshots provide an informed opinion of covenant quality for both bonds and loans, helping you make better decisions and saving you time.
Moody's global macro-economic and financial risk analysis helps credit professionals to "put the pieces together" in order to develop a robust risk management/investment strategy by analyzing early trends, and by uncovering the linkages between the worlds of politics, economics and finance and their impact on credit.
Islamic finance is one of the most dynamic sectors of global finance. For this reason, Moody’s remains strongly committed to supporting its growing importance. We provide market participants with a complete range of credit expertise and experience to meet the emerging needs in this field including ratings, research and training services.
Through the use of Moody’s Hybrid Tool Kit, the Hybrid Capital Group (HCG) assesses the relative debt and equity characteristics of hybrids and helps position hybrid ratings to ensure global consistency. The HCG is also responsible for updating and maintaining the hybrid data base, which is the primary repository for detailed information on outstanding hybrids.
This site contains Moody’s Investors Service research on banking regulation and risk management across all geographical franchises. We endeavour to provide our subscribers with up to the date commentaries on the latest developments in banking regulation and what they mean for banks ratings. We also provide commentaries on evolving risk management and risk governance practices and their credit implications.
This page provides a centralized source for Moody’s publications related to the stress testing of financial institutions (banks and insurance companies) globally.
In the wake of the financial crisis, many governments have asserted that bank creditors should not expect to receive the same level of systemic support in the future. Many governments are changing their laws and regulations to allow for the use of enhanced resolution powers, good bank/bad bank structures, and/or bail-ins. These changes are intended to make it easier for governments to impose losses on bank creditors; i.e., require "burden sharing."
This page presents Moody’s research on debt maturities and refunding needs for fundamental issuers.
Moody’s offers Insurers a unique blend of capital management, credit expertise, data, market standard analytics and extensive industry practice. Building on our broadly based pool of credit risk specialists and industry practitioners, Moody’s can facilitate a richer understanding of the new regulations, advise insurers on how best to approach the challenges ahead and then support them along the process.
Moody’s bank rating methodology considers two important features of a bank’s credit risk: (i) its intrinsic, or stand-alone strength, and (2) the likelihood it will receive financial support from outside entities to avoid default.
Speculative Grade liquidity (SGL) ratings are opinions about speculative grade issuer's liquidity position in the next year. They are assigned through the rating committee process based on issuer's ability to generate cash from internal and external sources of committed financing relative to their cash obligations. SGL ratings are calibrated using a scale of SGL-1 (very good liquidity) through SGL-4 (weak liquidity).
Market participants use SGL ratings to identify companies that may be at risk for imminent default and to screen for potential rating changes in their portfolios.
Moody’s syndicated loan ratings provide a consistent and independent assessment of credit risk. Loan ratings facilitate relative value comparisons between bank loans and bonds, and can be a tool for investors seeking to maximize returns for taking the least amount of risk. Syndicated loan ratings have become increasingly important as the line between what once were distinct markets continues to blur, and investors look across asset classes for the best return on a risk adjusted basis.
Loss Given Default (LGD) assessments and probability of default (PD) ratings provide additional transparency into the composition of Moody's traditional long-term ratings and help market participants understand how the composition of companies' capital structures could impact various instruments' ultimate recovery rates in the event of default. Moody's has assigned LGD assessments and PD ratings to more than 1,200 speculative grade companies in the US, Canada, and EMEA.
The authorization of Build America Bonds (BABs) under the American Recovery and Reinvestment Act of 2009 (ARRA) opened up the municipal market to a new broader group of investors who traditionally focus on taxable credits. With a significant portion of 2009 and 2010 municipal bonds issued as Build America Bonds, Moody's research provides insights into credit trends in the taxable municipal bond market.
This topic contains ratings and research information regarding Maple Bond Issuers for the Canadian Domestic Market. Industry research and rating methodologies related to Maple Bond issuers are included on the research tab below.The Ratings List tab is updated weekly and links to each issuer’s ratings and research page on moodys.com.
Since its creation in 2003, Moody's Corporate Governance Group has worked alongside Moody's credit analysts to incorporate governance more systematically into the credit rating process. The Group also focuses on analyst education on corporate governance, and periodically publishes special comments on particular governance issues.
Frequently Requested Information by Money Managers
Find all of our structured finance rating actions and research relating to our sovereign and bank rating actions here.
Moody's is recalibrating its US municipal ratings from the municipal scale to the global scale. The recalibration does not reflect a change in credit quality, or a change in our credit opinion, of an issue or issuer. The recalibration is simply a change in scale.