UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: trader2012 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: Re: link to morningstar bond summary by company Date: 11/28/2012 4:53 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Blacktree,

In your example (Alcoa's debt), Morningstar gives them a BB+ rating, whereas the three majors rate them Baa3/BBB-/BBB-, and I'd bet that it is Morningstar that has gotten it right, which is why that link can be so useful.

Sometime back, I compared a hundred so of Morningstar's ratings against those of the majors, and there wasn't much consistency. Mostly, M* agreed. Sometimes, they rated an issuer higher; sometimes, lower. But if I had to pick just one of the four (S&P, Moody's, Fitch, and Morningstar), I'd go with Morningstar.

The possible downside of trying to depend on their ratings is that they rate a narrower universe than then other three. However, they are also avoiding a lot of the more marginal issuers. So those who want an easy way to keep themselves out of trouble could accept that default. I.e., if an M* rating isn't available, don't look at the bonds.

Charlie
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement