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.
29 Oct 2009
RATING ACCURACY CONTINUES TO IMPROVE, VOLATILITY REMAINS HIGH
The one-year accuracy ratio continues to improve, reaching 80% in September from 78% in June, and is up from 74% a year ago. Ratings volatility remains at all-time high since 1983, almost doubling from 18.0% reported a year ago to 34.9% in the twelve months ending September 2009. When measured on a quarterly basis, however, volatility appears to be declining, as the downgrade-rate in the third quarter was well below the all-time high that was observed in the first quarter of 2009. Read Full Report
