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Conlact Valerie Hendy. Communications Editor
<br />Moody's hoveatoa Service
<br />Key to Moody's Municipal RaBngs
<br />99 Church St.. New York. NV 10007
<br />Telephone: 12121553-0341
<br />M dy's ratings provide myconn with a simple system of gradation by
<br />interest and pnceippaeI paybeens may be very moderate. and thereby nor
<br />which the relative Investment qualities of deb, instruments may he
<br />well a.( ... rded during both gad and bad times over the future tJn-
<br />noted
<br />cenruuy of psnnmm sit ... cn.rises &,nds Tn thin class.
<br />There am nine basic rating categories for long-term obligations. They
<br />B
<br />,--Be from ACC (highest quality) to C (lowe%T quality) Bonds in the
<br />W, A. Mot b ead � ,mined which Maly i believes tu. x ilia
<br />Bonds winch arc rated ell lacy chvamnsuca of the desrublc
<br />yang t inrolmen, tiobuta are desig ted by The symbols Anal.
<br />estmem. A ... ranre s f nmrnl and principal payments or matme,
<br />ploy y
<br />Al. Wow, MI end N.
<br />nano o! other terms of the contnm aver an Y g p,rud of time may
<br />y
<br />There are four raring cetegerW for short-term obi ge um, all of which
<br />be small.
<br />define an mcnhment gg ado o utualum Thearc designated Moody',
<br />Investment Grade resMp 1 through MID A.
<br />Coo
<br />In the eau of variable .Is demand obligation, (VRD0,d, two ralmp
<br />Bonds which are rated Coo are of pcor ataMing. Such names may be
<br />in defaull or there may be present elements of danger with respect to
<br />are assigned; one representing an evaluation of th, kgrte of risk aam-
<br />principal m interest
<br />coned pole scheduled prim.r end interest payments, and the other
<br />reprearnung an evaluation of the degree of risk aasaiated with the
<br />CO
<br />demand feature. The short lerm raping assigned to the demand feature
<br />Bonds which are rated CC represent ubhpunns which are apau'+w<
<br />of VRDns is designated as VMIG (pronounced yAa MID) When no
<br />m a high degree Such man are oven m default or have other me. rid
<br />nuns., pyybed tube long to shnrvtcon open ofa V Rryo.I will the
<br />boomerangs.
<br />Definitions of Bono Ratings
<br />Aaa
<br />Bonds which arc rated 1M am judged to be or the hair quality They
<br />carry the amdlar desist of investment auk and ere generally referred
<br />to a Be,,"edge. - fareres, pyments art ordec,ed by a large or
<br />by an
<br />erc"Peco 'lly suede martin end principal is secure. While the vanoas
<br />proTre o_ elements are likely to change. tech aharBes a can h vismb
<br />sad tie mini unlikely m impair, rho fundamentally iron, pasiuon of
<br />le
<br />Aa
<br />Bond, which are rated As. arc Judged m be of high quality h, all
<br />standards. Together with the Asset group they camynu whet are g,m
<br />orally known as high grade bonds They are rated lower than the best
<br />Mtdr M1ecauu magma �( protection may not be a large a in ACa
<br />saumes or Bumteaion.: pmtanlve ekmrnu may be ultimate, ample.
<br />rude or (here may be other elements present which make the long-term
<br />asks appear nmewhat larger thrtr m Asa se urrim,
<br />Bonds which as teed A Induces many favorable mvnlmenl .tributes
<br />and are 1. be considered as upper meth m Bade obligations. Fetters
<br />gnmg security to pnncipel and oure ar, considered adequate, bur
<br />dements may &, presem ni mMpot . muepribday to trope rmrn[
<br />time time in the metre.
<br />Boa
<br />B.nde which arc tared Ma aonsidered at medmin Brad, obhga-
<br />tione. I e. they art neither highly protected nor pool, secured Inter
<br />as, p yment% and principal wanly appear adequale far thr present
<br />bar certain protector elements may be Tism, o, may b, characlenam
<br />call, -mel able rive any g... I length of mmr Such &,ads lack .1
<br />sr.ndo, m ru item she ... e ernno end in fact have gwcidea re chat.
<br />acunuws w writ
<br />Ba
<br />&nwh which on .,.it Vic are lulled m have apn Mauve eemen[s.
<br />,hey faure canna the .....domed se even watered afire the prose, rmn of
<br />Bonds which ere rated C arc the lowest rated clef of bonds, and asues
<br />so rated can ber regarded as having emocrody pour prospects of ever
<br />meaning any real investment sundrng.
<br />Con ( !
<br />Bonds for which The secunly depends upon the completion ofsome act
<br />or the fulfillment of some condition arc rated conditionally. These are
<br />Mndssecuredby (a) earnings of projects under construction, III) con.
<br />rags of projects nu.mned in operating experience. (c) rentals which
<br />begin when fadtees am so.yleted, or (d) paymentsm la which scan,
<br />other trading counter. mooches. Parenthetical mina devotes proba-
<br />ble India statute uPm camplmmn of canstroaueln or elimination of
<br />bash of cmedom.
<br />Definitions of Short -Term Loon Ratings
<br />lamermc,l'ea wasaaiaed nthMgaYMq Hoop ere Ichate.
<br />fiM by dam oh . date of m.md,y or matudtien or an saturation
<br />date and descriptionforms to distinguish each rating frin a ratings.
<br />Each ravng dais an a notorque with no implTrntlrte a to any other
<br />umimr time of the time obb"r MID Hangs urmmrte at the'mire.
<br />men[ of the margabon while VMID rung aopnatnn ..It bs a footnote
<br />of each .user's specific Cr ectural a ,.the futures.
<br />MIG 1/VMIG 1
<br />The desanerme dentin best y.let, There is mrun, ,rang motm-
<br />,von by mmlduhed cash news, superear hqudtlY %airport "I d,mom
<br />straled broad -baud access la the market for refinancing.
<br />Mlr, 2/VMIG 2
<br />This devgnaiot denotes he la quality Margins, lectiam are ample
<br />although nor so large as m ,he p.Mr., group
<br />MIG 3/VMIG 3
<br />)'his denigrator. denies favorable gwbty All seeurny elements ice
<br />accounted for but there a lacki a, the undeniable,rese of the pert,
<br />ceding grade Liquidity and cash flow, protection may he narrow and
<br />market access fell minenang rs likely 1. to I,, well eauWnhed.
<br />MIG 4,fVM1h
<br />Tlus desunelnn dmorn adequate gnal,n Pr..,aIon tonnnoo.I, m
<br />prided n required If an mvesrmem .,aunty I, ymxnr and although
<br />n.st dt,mah or predommwnh speculates,. there n q aifm rid
<br />A n. k0oixglail
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