Standard and Poor’s Capital IQ Global Markets Intelligence group uses a BP Vol. Comparison, OAS Comparison, Interest Coverage Ratio, and a myriad of other metrics to evaluate Moody’s 5.5% senior unsecured bond, maturing September 1, 2020. S&P believes that this bond offers good risk-adjusted returns relative to other comparable bonds. Their probability of default (PD) is currently at 0.017%, which is considerably better than the 0.06% average attained by the remainder of the diversified financial sector and sub-sector.
In the Issuer Analysis and Credit Metrics section, S&P pinpoints some potential factors that drive Moody’s success. They attribute strong brand name recognition as a force powerful enough to ensure that Moody’s credit measures will remain stable, “despite volatile financial markets and economic growth trends.” Similarly, they believe that Moody’s will be able to avoid the elevated legal risk for companies within the ratings industry, even though S&P themselves weren’t able to. In order to further the comparison, S&P’s total debt and revenue is also compared to those of Moody’s.
S&P’s comprehensive report is around 2,200 words long; it contains twelve charts, three tables, numerous ratios, and complete bond descriptions; it is a valuable tool for everyone from the first time investor to the industry expert.
Interested? Purchase this report on Moody’s Corp’s Senior Unsecured Bonds.