Moody’s is a bond rating outfit. Their ratings determine the relative ability of companies to repay debt. In common parlance, whether the company’s bonds are “junk” and, if junk, “how bad”?
This is their bottom tier of companies. These are the ones looking shaky in other words.
If they’re headed by entrepreneurs, they could make a complete and dramatic turn around… and one day be a legend in the business world.
If they’re headed by “caretakers” who only know how to calculate the value of their golden parachute, well…
What’s it mean to you?
1. If you’re doing business with them – take cash!
2. If you’re working for them – have a Plan B forming in your mind!
3. If you’re skilled in what some of these companies do and they go belly up, it may be time to start or expand your business. It may mean your competitor is about to go “belly up”.
4. If the company is poised for a dramatic turn around, it still may mean many employees will be forced to find their own Plan B.
Here’s the list as of March 1, 2009:
dog forum on April 4th, 2009 at 4:18 pm
Great list. Hard to believe arbys and AMD have such a low rating these days. Personally im out of the market, things are too scary.