Investing Tax Free
 

Municipal Note Ratings

 

The municipal note ratings are slightly different from municipal bond ratings. Municipal note ratings are not as common and you usually don't see them around unless you specifically are looking for municipal notes. Municipal note ratings are based on the quality of the notes and the ability of the municipal issuer to pay back the principal and interest.

As with municipal bond ratings, there are Moody's Ratings for short term municipal notes as well as S&P Ratings for short term municipal notes. The municipal note ratings range from best quality to adequate quality for Moody's Ratings. Moody's has four municipal note ratings whereas S&P only has three, speculative, satisfactory and very strong. Another municipal note ratings not shown here is the Fitch ratings for municipal notes which are F-1, F-2 and F-3.

 
Moody's MIG Ratings for Municipal Notes

Ratings

Provider

Description

MIG 1

Moody's ratings

Best quality

MIG 2

Moody's ratings

High quality

MIG 3

Moody's ratings

Favorable quality

MIG 4

Moody's ratings

Adequate quality



 
S&P Ratings for Municipal Notes 

Ratings

Provider

Description

SP-1

S&P ratings

Very strong of strong capacity to pay principal and interest. Those issues determined to possess overwhelming safety characteristics will be given a plus (+) designation.

SP-2

S&P ratings

Satisfactory capacity to pay principal and interest.

SP-3

S&P ratings

Speculative capacity to pay principal and interest.