Written By
Paul Tracy
Updated November 4, 2020

What is Moody's?

Moody's Corporation (NYSE:MCO) is a publicly traded financial services company.

How Does Moody's Work?

Moody's Corporation operates two segments: Moody's Investor Service and Moody's Analytics.

Moody's Investor Service provides credit ratings and research on bonds, other debt instruments and other securities. Moody's Analytics creates and sells analytical financial software and provides advisory services and research intended to predict and measure financial risk.

The company is most known for the ratings it gives for debt obligations and structured-finance deals of corporations, states, institutions and governments. Its ratings are similar to ratings also offered by competitor Standard & Poor's (S&P).

Why Does Moody's Matter?

The idea behind Moody's and other companies like it is to provide not just information to investors, but also insight that can help them make better decisions (as with credit ratings, for example). The value comes not only from the information and insight itself, but also from the notion that Moody's is an independent entity that is not beholden to any particular issuer and thus has no incentive to offer anything other than an objective assessment of a particular investment's risk.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Moody's.
Be the first to ask a question

If you have a question about Moody's, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Moody's, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Moody's

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms