Rating Definitions

Money Market and Bond Fund Ratings

Moody’s Money Market and Bond Fund Ratings are opinions of the investment quality of shares in mutual funds and similar investment vehicles which principally invest in short-term and long-term fixed income obligations, respectively. As such, these ratings incorporate Moody’s assessment of a fund’s published investment objectives and policies, the creditworthiness of the assets held by the fund, as well as the management characteristics of the fund. The ratings are not intended to consider the prospective performance of a fund with respect to appreciation, volatility of net asset value, or yield.

Aaa

Money Market Funds and Bond Funds rated Aaa are judged to be of an investment quality similar to Aaa-rated fixed income obligations ? that is, they are judged to be of the best quality.

Money Market Funds and Bond Funds rated Aa are judged to be of an investment quality similar to Aa-rated fixed income obligations ? that is, they are judged to be of high quality by all standards.

Money Market Funds and Bond Funds rated A are judged to be of an investment quality similar to A-rated fixed income obligations ? that is, they are judged to possess many favorable investment attributes and are considered as upper-medium-grade investment vehicles.

Baa

Money Market Funds and Bond Funds rated Baa are judged to be of an investment quality similar to Baa-rated fixed income obligations ? that is, they are considered as medium-grade investment vehicles.

Money Market Funds and Bond Funds rated Ba are judged to be of an investment quality similar to Ba-rated fixed income obligations ? that is, they are judged to have speculative elements.

Money Market Funds and Bond Funds rated B are judged to be of an investment quality similar to B-rated fixed income obligations ? that is, they generally lack characteristics of a desirable investment.

Caa

Money Market Funds and Bond Funds rated Caa are judged to be of an investment quality similar to Caa-rated fixed income obligations ? that is, they are of poor standing.

Money Market Funds and Bond Funds rated Ca are judged to be of an investment quality similar to Ca-rated fixed income obligations ? that is, they represent obligations that are speculative in a high degree.

Money Market Funds and Bond Funds rated C are judged to be of an investment quality similar to C-rated fixed income obligations ? that is, they are the lowest-rated class of bonds.

Note: Numerical modifiers 1, 2 and 3 may be appended to each rating classification from Aa to Caa. The modifier 1 indicates that the fund or similar investment vehicle ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the fund or similar investment vehicle ranks in the lower end of its letter rating category.