New Money

Moody's Bottom Rung: The Grim Reaper of Corporate Bankruptcies

By Katy Marquardt

Posted: March 10, 2009

Credit-rating firm Moody's released a list today called The Bottom Rung, which includes 283 companies it believes are at risk of corporate bankruptcy. The companies span sectors of the economy (ZDNet breaks it down with a pie chart and lists a few dozen companies that made the list, including AMD, Blockbuster, Orbitz, and Sirius XM.) Not surprisingly, industries that make up the biggest pieces of the pie include autos, casinos, retailers, and media companies.

What's odd about this list, says MarketPlace's Ashley Milne Tyte, is that ratings agencies have traditionally highlighted only companies with a low likelihood of default.

It's worth pointing out that Moody's has come under fire for dragging its feet on cutting the ratings of bonds backed by subprime mortgages.

found the list

Just go to moodys.com, register and search for "bottom rung." You can download the list for free.

Jose of WA @ Mar 11, 2009 03:36:51 AM

bottom rung

see huffington post for list

lookharder of MA @ Mar 10, 2009 18:12:21 PM

where's the list

Why make a list if no one has a list. Why even mention it at all

norma of AZ @ Mar 10, 2009 15:51:11 PM

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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