How are municipal securities rated?
The three major rating agencies that evaluate municipal credit are Moody’s Investors Service, Standard & Poor’s Corporation (S&P), and Fitch Investors Service. They research the issuer’s ability to repay debt and then assign a rating symbol which ranks the quality of the bonds. The chart below describes the rating symbols used for bonds and notes.
Related Questions
- What is the municipal securities business that a dealer would be banned from engaging in with an issuer if certain political contributions are made to officials of such issuers?
- What is the difference between buying municipal securities in the primary market versus buying in the secondary market?
- How are municipal securities rated?
