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	You are here: Home > Investment Definitions > Ratings > Moody's Ratings: Moody's Moody's has the following grades: Bonds of Baa or greater are considered 'Investment Grade'. Additionally, Moody's breaks down each category into: 1 - indicates the highest level within a category. 2 - indicates the middle of the category. 3 - which indicates the low end of the category. An example would be Aaa1 which indicates this is the highest level inside the Aaa level. Aaa Bonds of the highest quality Aa Bonds of high quality. A Bonds whose security of principal and interest is considered adequate but may be impaired in the future. Baa Bonds of medium grade that are neither highly protected nor poorly secured. Ba Bonds of speculative quality whose future cannot be considered well ensured. B Bonds that lack characteristics of a desirable investment. Caa Bonds in poor standing that may be defaulted. Ca Speculative bonds that are often in default. C Bonds with little probability of any investment value (lowest rating). The table below compares the long term credit ratings of the 4 leading rating agencies. Moody's S&P Fitch DCR Aaa AAA AAA AAA Aa1 AA+ AA+ AA+ Aa2 AA AA AA Aa3 AA- AA- AA- A1 A+ A+ A+ A2 A A A A3 A- A- A- Baa1 BBB+ BBB+ BBB+ Baa2 BBB BBB BBB Baa3 BBB- BBB- BBB- Ba1 BB+ BB+ BB+ Ba2 BB BB BB Ba3 BB- BB- BB- B1 B+ B+ B+ B2 B B B B3 B- B- B- Caa CCC+ CCC CCC   CCC       CCC-     Ca       C           DDD       DD DD   D D         DP ©2004 Safra National Bank of New York. All rights reserved. Member FDIC.  Equal housing lender. Please read our disclaimer.