Introducing Morningstar's corporate credit ratings

A new measure to help investors assess the credit risk of companies has been launched in the US and will soon come to the UK and Europe

Haywood Kelly, CFA 7 December, 2009 | 5:09PM

We're pleased to announce the launch of Morningstar's corporate credit ratings.

These new ratings describe a company's creditworthiness relative to the broader universe of corporate borrowers. The higher the grade, the more capable we think the company is of fulfilling its obligations to bondholders in a timely manner. At the top end of the range, we award AAA ratings to a handful of firms including Exxon, Johnson & Johnson and Microsoft. These wide-moat companies have impeccable balance sheets and the ability to generate copious amounts of cash. You can find a full list of our initial credit ratings here.

We're launching with credit ratings on 100 US companies but will be rolling out credit ratings on international companies in 2010. In selecting the 100 companies, we took a sample of companies from our coverage list from a variety of industries and a variety of credit profiles. Most are large firms with a significant amount of bonds outstanding. During the coming months, we'll be assigning ratings to more companies, prioritising the big bond issuers that are most relevant to bond investors. By the time we're done, we plan to rate all significant bond issuers on our coverage list, which would be up to 1,000 global companies.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Haywood Kelly, CFA  Haywood Kelly, CFA, is vice president of equity research at Morningstar. He'd love to hear from you, and promises to read all your e-mail (even if he can't respond to it all).

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies