For Moody's (not Standard and Poor's) rating system, the highest rating is AAA while the lowest is D.
Understand the Problem
The question asks about the rating system used by Moody's and whether it states that the highest rating is AAA and the lowest is D. The user needs to confirm the accuracy of this statement.
Answer
False
The statement is false because for Moody's rating system, the highest rating is Aaa, not AAA, and the lowest is C, not D.
Answer for screen readers
The statement is false because for Moody's rating system, the highest rating is Aaa, not AAA, and the lowest is C, not D.
More Information
Moody's uses a different notation where Aaa represents the highest credit quality and C represents the lowest. Standard & Poor's uses AAA as the highest and D as the lowest.
Tips
A common mistake is confusing the notation between different rating agencies. Ensure to reference the correct scale.
Sources
- Moody's Ratings - Wikipedia - en.wikipedia.org
- [PDF] Moody's long-term obligation ratings - moodys.com
- How the Moody's Rating Scale Works - SmartAsset - smartasset.com
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