PPT Slide
Quotes from Moody’s study on the credit histories of over 14,000
US and non-US corporate debt issuers for the year 1920-1996.
• Sudden large changes in credit quality have been very infrequent.
• Higher ratings have been generally less likely than lower ratings
to be revised over any time period from one to 15 years.
• When the higher-end investment-grade ratings have changed, they
have demonstrated a greater propensity for downward movement
• The strength of correlation of credit qualities is determined, in part,
by macroeconomic, industrial, geographic factors.