FINANCIAL INSTITUTIONSISSUER COMMENT 27 JULY 2015THE GOLDMAN SACHS GROUP, INC. (GS)Moodys Senior Unsecured Rating A3Moodys Outlook STABond-Implied Rating Baa1CDS-Implied Rating Baa2EDF-Implied Rating A3As of 7/22/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.This report has been republished on 1 July 2015 with the correction to Outlook in the ratings box from POS to STA.Market Signals ReviewGoldman Sachs: CDS-Implied Rating Advances Goldman Sachss CDS-implied rating rose one notch over the last 90 days to Baa2, while the bond- and EDF'-implied ratings match their levels of three months ago.The CDS-implied rating has not been higher than Baa2 over the last five years save for a single day where it advanced to Baa1 (June 6, 2014).FIGURE 1. GOLDMAN SACHS: MOODYS AND MARKET-IMPLIED RATINGS - LAST 90 DAYS (DAILY DATA)The bond-implied rating for GS varied between Ba2 and A3 over the last three months (Figure 1). Today it matches the Baa1 observation seen on April 2. Prior to this period, the bond-implied rating last attained the A3 level in March 2011.MOODY'S ANALYTICS FINANCIAL INSTITUTIONS2 27 JULY 2015 MARKET SIGNALS REVIEW : GOLDMAN SACHS: CDS-IMPLIED RATING ADVANCESThe EDF-implied rating was A3 at each daily observation over the last three months. The present A3 EDF-implied rating matches the highest level of the last five years.The bond-implied ratings gap is now -1 notch, having fallen from zero notches 90 days ago. (Figure 2). The CDS-implied ratings gap is -2 notches, the same as the level three months ago. The EDF-implied ratings gap worsened from +1 notch over last the 90 days to zero notches now. These ratings gaps reflect the change in GSs senior debt rating from Baa1 to A3 on May 28, 2015.Our ratings ga...
