Moody's Credit Policy function promotes improvement and consistency in Moody's credit analysis. The group is divided into two units: (1) standing committees which focus on improving rating methodology and practices related to specific credit concerns; and (2) the Credit Policy Research team which conducts research on defaults, loss-given-default, and rating transitions, and develops quantitative tools to support ratings and analysis. The group reports to the Credit Policy Committee and is comprised of Moody's senior management team.
27 Jan 2010
RATING ACCURACY CONTINUES TO IMPROVE, VOLATILITY DECLINING
The one-year horizon accuracy ratio improved to 83% for December 2009, compared to 78% in September 2009, and is up sharply from 67% for December 2008. Annual ratings volatility, although down slightly to 31.1% from the peak of 32.4% in the previous quarter, is still considerably high compared to the 2008 level of 21.1%. When measured on a quarterly basis, however, volatility has declined significantly. The gap between the one year accuracy of Moody’s and Bond-Implied ratings is now less than one percentage point, a significant improvement from the 21 percentage point gap reported in December 2008 ... Read Full Report
