QRATE Quantitative Ratings Estimator

Source: Dan White, Sunayana Mehra, Martin Wurm and Emily Mandel, Regional Financial Review, July 2018
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QRATE is a quantitative ratings estimator designed by Moody’s Analytics to estimate municipal issuer credit quality based solely off of quantitative economic, demographic and financial metrics for a given issuer at a given time. The models cover all 11 sectors of the municipal market and allow users to calculate quantitative QSCORES based off some of the same analyst-adjusted financial data used by Moody’s Investors Service. A QSCORE is a numerical value that can be mapped to a standard letter rating equivalent, as well as estimated probability of default and loss-given-default measures.