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Tuesday, September 18, 2012

Moody Bond Ratings

Moody's Bond Ratings are intended to characterize the risk of holding a bond. These ratings, or risk assessments, in part determine the interest that an issuer must pay to attract purchasers to the bonds. All information herein was obtained from Moody's Bond Record.  The symbols used are AAA, AA, BAA, etc. They symbolize the risk associated with that particular instrument as regards to the payment of principle and the interest. Another rating agency which is not as big, nevertheless famous is Standard & Poor'’ (Popularly known as S&P). They have different symbols for denoting various degrees of risk associated with the debt instruments.

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