WTF is a Moody’s?


WTF is a Moody’s?

Illustration: Palak Bansal


ndia’s rating on Moody’s, an American credit rating agency, has gone up today and you’ve nodded in approval and posted about it on FB. But you secretly know that you wouldn’t know a credit rating if it came and hit you in the face. Don’t worry, we’ve got you covered.

First, think of a credit rating agency like a class teacher of the financial world and the various countries, its students. India is a student, America is a student, Japan is a student. Moody’s regularly issues report cards of how well students have done during the year. (India is all of us, an average student.)