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Bond Accountability Commission 2 Recommendations Page 98

other entities, such as corporations,” said Moody's Group Managing Director Gail Sussman. “The recalibration of the ratings represents a move from their expression on one scale to another and does not represent a change in our opinion of the credit quality of the affected issuers,” she added. Moody’s has used a distinct rating scale for U.S. municipal bonds since 1918. For new sales during the recalibration period, securities will be rated on the municipal rating scale if the sector (e.g. states, transportation authorities, higher education, healthcare, etc.) has not been recalibrated, and on the global rating scale if that sector has already been recalibrated. This is designed to maintain comparability among like securities during the transition. For local governments, the sector is defined as all local governments in the same state. During the recalibration process, bond issues and issuers that have been recalibrated to the global scale will carry a (GSR) notation on Moody's other data products will likewise clearly identify which municipal ratings have been recalibrated to the global scale. A schedule outlining the projected timing of the recalibration for each sector, Moody’s global scale rating methodology, and other information

BAC2 Recomendations Final 04062010