Moody's Short-term Debt Ratings

Moody's short-term debt ratings are opinions of the ability of issuers to repay punctually senior debt obligations. These obligations have an original maturity not exceeding one year, unless explicitly noted.

• Prime-1: Issuers rated P-1 have a superior ability for repayment of senior short-term debt obligations. P-1 repayment ability will often be evidenced by many of the following characteristics:
  • Leading market position in well established industries. High rates of return on funds employed.
  • Conservative capitalization structure with moderate reliance on debt and ample asset protection.
  • Broad margins in earnings coverage of fixed financial charges and high internal cash generation.
  • Well-established access to a range of financial markets and assured sources of alternative liquidity.
• Prime-2: Issuers rated P-2 have a strong ability for repayment of senior short-term debt obligations. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternative liquidity is maintained. (Only P-1, P-2 ratings definitions have been presented here. Consult Moody's Investor Service for ratings in entirety.)

Moody’s short-term debt ratings are opinions of the ability of issuers to repay punctually senior debt obligations. These obligations have an original maturity not exceeding one year, unless explicitly noted.

Prime-1: Issuers rated P-1 have a superior ability for repayment of senior short-term debt obligations. P-1 repayment ability will often be evidenced by many of the following characteristics:

• Leading market position in well established industries. High rates of return on funds employed.
• Conservative capitalization structure with moderate reliance on debt and ample asset protection.
• Broad margins in earnings coverage of fixed financial charges and high internal cash generation.
• Well-established access to a range of financial markets and assured sources of alternative liquidity.

Prime-2: Issuers rated P-2 have a strong ability for repayment of senior short-term debt obligations. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternative liquidity is maintained. (Only P-1, P-2 ratings definitions have been presented here. Consult Moody’s Investor Service for ratings in entirety.)

• Idaho Office of the Attorney General — Mortgage Servicing Glossary retrieved 2014-06-15 Cite