Anticipating full execution in the market this month, Moody's Investors Service recently published the final methodology for loss-given-default assessments (LGDs) and probability-of-default ratings (PDR), as well as implementing the methodology for new, first time issuers in the U.S. and Canada on Sept. 6.

PDRs will be assigned to issuers and not to specific debt instruments, using the standard Moody's alpha-numeric scale. LGDs, ranging from LGD1 (loss anticipated to be 0% - 9%) to LGD6 (loss anticipated to be 90% - 100%), will be assigned to individual rated debt issues including loans, bonds and preferred stock.

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