Posts tagged ‘Moody’s’

Power Breakfast: Moody’s upgrades India’s credit bond rating to Baa2 from Baa3

Power Breakfast: This segment of Zee Business brings to you latest updates on share market. Also know the impact of India’s credit rating boost by Moody’s on Indian and global markets. Watch this clip to know more.

About Zee Business
————————–

Zee Business is one of the leading and fastest growing Hindi business news channels in India. Live coverage of Indian markets – Sensex & Nifty

————————————————————–

You can also visit us at:
https://goo.gl/sXWpTF

Like us on Facebook:
https://goo.gl/OMJgrn

Follow us on Twitter:
https://goo.gl/OjOzpB

Subscribe to our other network channels:
Zee News: https://goo.gl/XBvkjZ
Video Rating: / 5

Money Talks: Moody’s cuts China’s credit rating as debts climb

For the first time in nearly 30 years the Moody’s has downgraded China’s credit rating. The agency says it’s worried about the growing amount of debt in China, and slowing economic growth. The Chinese government says Moody’s underestimates its ability to tackle the problem. Azhar Sukri reports.

Subscribe: http://trt.world/subscribe

Livestream: http://trt.world/ytlive

Facebook: http://trt.world/facebook

Twitter: http://trt.world/twitter

Instagram: http://trt.world/instagram

Visit our website: http://trt.world
Video Rating: / 5

Video shows what credit rating means. An estimate, based on a company or person’s history of borrowing and repayment and/or available financial resources, that is used by creditors to determine the maximum amount of credit it can extend to a without undue risk.. Credit rating Meaning. How to pronounce, definition audio dictionary. How to say credit rating. Powered by MaryTTS, Wiktionary
Video Rating: / 5

Warren Buffett on Credit Rating Agencies, Moody’s, S&P, Bonds, and Corporate Shareholders

Moody’s Investors Service, often referred to as Moody’s, is the bond credit rating business of Moody’s Corporation, representing the company’s traditional line of business and its historical name. Moody’s Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor’s and Fitch Group, is considered one of the Big Three credit rating agencies.

The company ranks the creditworthiness of borrowers using a standardized ratings scale which measures expected investor loss in the event of default. Moody’s Investors Service rates debt securities in several market segments related to public and commercial securities in the bond market. These include government, municipal and corporate bonds; managed investments such as money market funds, fixed-income funds and hedge funds; financial institutions including banks and non-bank finance companies; and asset classes in structured finance.[1] 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 by John Moody in 1909 to produce manuals of statistics related to stocks and bonds and bond ratings. In 1975, the company was identified as a Nationally Recognized Statistical Rating Organization (NRSRO) by the U.S. Securities and Exchange Commission. Following several decades of ownership by Dun & Bradstreet, Moody’s Investors Service became a separate company in 2000; Moody’s Corporation was established as a holding company.

In the late 1960s and 1970s, commercial paper and bank deposits began to be rated. As well, the major agencies began charging the issuers of bonds as well as investors — Moody’s began doing this in 1970[5] — thanks in part to a growing free rider problem related to the increasing availability of inexpensive photocopy machines,[14] and the increased complexity of the financial markets.[10][15] Rating agencies also grew in size as the number of issuers grew exponentially,[16] both in the United States and abroad, making the credit rating business significantly more profitable. In 2005 Moody’s estimated that 90% of credit rating agency revenues came from issuer fees.[17]

The end of the Bretton Woods system in 1971 led to the liberalization of financial regulations, and the global expansion of capital markets in the 1970s and 1980s.[5] In 1975, the SEC changed its minimum capital requirements for broker-dealers, using bond ratings as a measurement. Moody’s and nine other agencies (later five, due to consolidation) were identified by the SEC as “nationally recognized statistical ratings organizations” (NRSROs) for broker-dealers to use in meeting these requirements.[3][18]

The 1980s and beyond saw the global capital market expand; Moody’s opened its first overseas offices in Japan in 1985, followed by offices in the United Kingdom in 1986, France in 1988, Germany in 1991, Hong Kong in 1994, India in 1998 and China in 2001.[5] The number of bonds rated by Moody’s and the Big Three agencies grew substantially as well. As of 1997, Moody’s was rating about trillion in securities from 20,000 U.S. and 1,200 non-U.S. issuers.[12] The 1990s and 2000s were also a time of increased scrutiny, as Moody’s was sued by unhappy issuers and investigation by the U.S. Department of Justice,[19] as well as criticism following the collapse of Enron, the U.S. subprime mortgage crisis and subsequent late-2000s financial crisis.[5][20]

Following several years of rumors and pressure from institutional shareholders,[21] in December 1999 Moody’s parent Dun & Bradstreet announced it would spin off Moody’s Investors Service into a separate publicly traded company. Although Moody’s had fewer than 1,500 employees in its division, it represented about 51% of Dun & Bradstreet profits in the year before the announcement.[22] The spin-off was completed on September 30, 2000,[23] and, in the half decade that followed, the value of Moody’s shares improved by more than 300%.[12]

In June 2013, Moody’s Investor Service has warned that Thailand’s country’s credit rating may be damaged due to an increasingly costly rice-pledging scheme which lost 200 billion baht (.5 billion) in 2011-2012.

http://en.wikipedia.org/wiki/Moody%27s
Video Rating: / 5

Tata Motors Gets A Ba3 Rating From Moody’s

It is yet another achievement for the auto major Tata Motors. Recently the company has been provided with a better rating by a famous rating agency. The rating agency Moody’s has recently raised the rating of Tata Motors, the largest automaker of the country. This rating has been increased by a notch because of the improved and developed performance of Jaguar Land Rover, the Tata Motors owned British marquee brand.

Earlier, the rating agency had provided a B2 rating to Tata Motors but now because of the improved performance, this rating has been raised to a Ba3. Jaguar Land Rover has now been showing improved performance though it had declined during the third quarter of the fiscal year 2009. But since that time, Jaguar Land Rover (JLR) has been continuously recovering and has shown growing and progressing volume along with higher revenues alongwith margins on the launches of new products, stated the Moody’s Investor Service. Moody’s Vice-President/Senior Credit Officer Alan Greene commented that the up- gradation in rating shows the recovery in the performance of operations of the JLR business which exceeded Moodys expectations. He further added that the company is growing with speed and also the Indian business remains quite profitable. This has given the output of much improved leverage ratio of Tata Motors Limited.

Besides these statement, Moody’s also commented that Tata Motors is also observing a huge recovery in its Indian business. This has got the support of auto sectors growth of the country. On one side, the business of the commercial vehicles is constantly booming and is representing the main part of Indian operations of the company while on the other side, Tata Motors passenger vehicle volume growth can be observed by the current launches of product, like the cheapest car of the world Tata Nano or the launch of Tata Manza. Such launches helped in powerful revenue growth.

Moodys also stated that the stable outlook of the company shows the stronger solid footing of the business which follows the market acceptance of newly launched products and the company business strategy divisions that are being steadily implemented.

More Credit Rating Articles