**Moody's Analytics Excel Formula Guide**

**Intro**
You have full access to Moody's Analytics credit data through the Moody's Analytics Excel Add-in, but you should only pull Moody's data **when the user explicitly tells you to**. Moody's Analytics specializes in credit risk metrics including Expected Default Frequencies (EDF), credit ratings, loss given default estimates, and fair value spreads for public companies worldwide. You can retrieve any data point by writing MA formulas directly in Excel cells.

**IMPORTANT:** Before completing a task involving Moody's Analytics, you must verify:
1. Your MADS and MADR formulas do not return errors.
2. All values should seem reasonable and make intuitive sense based on your general knowledge of credit risk.
3. Use cell references for identifiers and metrics when possible as opposed to hardcoded values.
4. Be aware that EDF values are expressed as percentages (e.g., 0.25 = 0.25% probability of default).
5. Coverage includes ~40,000+ public companies globally with varying data depth.

You should essentially gut check every value that shows up. If there are any errors or the values seem wrong, you likely wrote the formula syntax incorrectly or are using invalid metric codes. Please correct the formula until it outputs the proper value.

**Note:** Moody's Analytics is a Pattern B integration. Standard credit metrics work directly, but some advanced features may require familiarity with Moody's platform for full utilization.

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**Moody's Analytics Excel Functions Overview**

Moody's Analytics provides these main Excel functions:

| Function | Purpose | Use Case |
|----------|---------|----------|
| MADS | Moody's Analytics Data Static | Current/point-in-time data |
| MADR | Moody's Analytics Data Range | Historical time series data |
| MAINFO | Company information | Metadata and identifiers |
| MALIST | Security lists | Portfolio screening |

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**1. MADS - Static Data (Single Value)**

Returns current or point-in-time credit metrics.

**Syntax:** =MADS("Identifier", "Metric")

**Parameters:**
| Parameter | Description | Required |
|-----------|-------------|----------|
| Identifier | Ticker, CUSIP, or ISIN | Yes |
| Metric | Credit metric name | Yes |

**Examples:**
=MADS("AAPL", "EDF1Y")
-> Apple's 1-year probability of default.

=MADS("MSFT", "ImpliedRating")
-> Microsoft's EDF-implied credit rating.

=MADS("037833100", "DistanceToDefault")
-> Apple's distance to default (using CUSIP).

**Using Cell References:**
=MADS(A1, "EDF1Y")
-> EDF for identifier in cell A1.

=MADS("AAPL", B1)
-> Metric specified in cell B1 for Apple.

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**2. MADR - Range Data (Time Series)**

Returns historical credit metrics over a date range.

**Syntax:** =MADR("Identifier", "Metric", "StartDate", "EndDate")

**Parameters:**
| Parameter | Description | Required |
|-----------|-------------|----------|
| Identifier | Ticker, CUSIP, or ISIN | Yes |
| Metric | Credit metric name | Yes |
| StartDate | Start date (MM/DD/YYYY) | Yes |
| EndDate | End date (MM/DD/YYYY) | Yes |

**Examples:**
=MADR("AAPL", "EDF1Y", "01/01/2024", "12/31/2024")
-> Apple's daily EDF history for 2024.

=MADR("JPM", "ImpliedRating", "01/01/2020", "12/31/2024")
-> JPMorgan's implied rating history.

=MADR("GE", "DistanceToDefault", "01/01/2023", "12/31/2023")
-> GE's distance to default for 2023.

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**3. Identifier Formats**

Moody's Analytics accepts multiple identifier types:

| Type | Format | Example |
|------|--------|---------|
| Ticker | Standard ticker | `AAPL`, `MSFT`, `JPM` |
| CUSIP | 9-character CUSIP | `037833100` (Apple) |
| ISIN | 12-character ISIN | `US0378331005` (Apple) |
| Moody's ID | Internal ID | Provided by platform |

**Notes:**
- US tickers work without suffix
- International companies may require ISIN or CUSIP
- For subsidiaries, use specific entity identifier

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**4. Credit Metrics Reference**

**Expected Default Frequency (EDF):**
| Metric | Description |
|--------|-------------|
| `EDF1Y` | 1-year probability of default (%) |
| `EDF5Y` | 5-year cumulative probability of default (%) |
| `EDF10Y` | 10-year cumulative probability of default (%) |
| `EDFTerm` | EDF term structure (array) |

**Distance to Default:**
| Metric | Description |
|--------|-------------|
| `DistanceToDefault` | Standard deviations from default point |
| `DD` | Alias for DistanceToDefault |
| `DDVol` | Volatility of distance to default |

**Credit Ratings:**
| Metric | Description |
|--------|-------------|
| `ImpliedRating` | EDF-derived credit rating (Aaa, Aa1, etc.) |
| `MIR` | Market Implied Rating |
| `AgencyRating` | Actual agency rating (if available) |
| `RatingNotch` | Numeric rating (1=Aaa, 21=C) |

**Loss Given Default:**
| Metric | Description |
|--------|-------------|
| `LGD` | Loss given default (%) |
| `LGDSenior` | Senior unsecured LGD |
| `LGDSubordinated` | Subordinated LGD |
| `RecoveryRate` | Expected recovery rate (1 - LGD) |

**Fair Value Spreads:**
| Metric | Description |
|--------|-------------|
| `FVS` | Fair value spread (bps) |
| `FVS1Y` | 1-year fair value spread |
| `FVS5Y` | 5-year fair value spread |
| `CreditSpread` | Current credit spread |

**Market Data:**
| Metric | Description |
|--------|-------------|
| `MarketCap` | Market capitalization |
| `AssetValue` | Estimated asset value |
| `AssetVol` | Asset volatility |
| `EquityVol` | Equity volatility |
| `DebtValue` | Total debt value |

**Financial Ratios (Credit):**
| Metric | Description |
|--------|-------------|
| `Leverage` | Debt/Assets ratio |
| `InterestCoverage` | EBIT/Interest expense |
| `DebtToEBITDA` | Debt/EBITDA ratio |
| `CashToDebt` | Cash/Total debt |

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**5. Rating Scale Reference**

Moody's uses a 21-notch rating scale:

| Rating | Notch | Description |
|--------|-------|-------------|
| Aaa | 1 | Prime, minimal credit risk |
| Aa1 | 2 | High grade |
| Aa2 | 3 | High grade |
| Aa3 | 4 | High grade |
| A1 | 5 | Upper medium grade |
| A2 | 6 | Upper medium grade |
| A3 | 7 | Upper medium grade |
| Baa1 | 8 | Lower medium grade |
| Baa2 | 9 | Lower medium grade |
| Baa3 | 10 | Lower medium grade |
| Ba1 | 11 | Non-investment grade |
| Ba2 | 12 | Non-investment grade |
| Ba3 | 13 | Non-investment grade |
| B1 | 14 | Highly speculative |
| B2 | 15 | Highly speculative |
| B3 | 16 | Highly speculative |
| Caa1 | 17 | Substantial risk |
| Caa2 | 18 | Substantial risk |
| Caa3 | 19 | Substantial risk |
| Ca | 20 | Extremely speculative |
| C | 21 | Default imminent |

**Investment Grade:** Baa3 (notch 10) and above
**High Yield:** Ba1 (notch 11) and below

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**6. Example Formulas by Use Case**

**Credit Risk Assessment:**
=MADS("AAPL", "EDF1Y")
-> Apple 1-year default probability.

=MADS("TSLA", "DistanceToDefault")
-> Tesla distance to default.

=MADS("JPM", "ImpliedRating")
-> JPMorgan implied credit rating.

**Credit Comparison:**
=MADS("AAPL", "EDF1Y") vs =MADS("MSFT", "EDF1Y")
-> Compare Apple vs Microsoft default risk.

**Portfolio Screening:**
=MADS(A2, "EDF1Y") for each ticker in column A
-> Drag down for portfolio EDF screening.

**Historical Credit Trends:**
=MADR("GE", "EDF1Y", "01/01/2015", "12/31/2024")
-> GE's 10-year EDF history.

=MADR("F", "ImpliedRating", "01/01/2020", "12/31/2024")
-> Ford's rating history through COVID.

**Loss Analysis:**
=MADS("HYG", "LGD")
-> High yield bond LGD estimate.

=MADS("XYZ", "RecoveryRate")
-> Expected recovery in default scenario.

**Spread Analysis:**
=MADS("IBM", "FVS5Y")
-> IBM 5-year fair value spread.

=MADS("T", "CreditSpread")
-> AT&T current credit spread.

**Leverage Metrics:**
=MADS("NFLX", "Leverage")
-> Netflix debt/assets ratio.

=MADS("BA", "DebtToEBITDA")
-> Boeing debt/EBITDA.

**Volatility Analysis:**
=MADS("TSLA", "EquityVol")
-> Tesla equity volatility.

=MADS("NVDA", "AssetVol")
-> NVIDIA asset volatility.

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**7. EDF Interpretation Guide**

**EDF Ranges and Risk Levels:**
| EDF Range | Risk Level | Approximate Rating |
|-----------|------------|-------------------|
| 0.01% - 0.05% | Very Low | Aaa - Aa |
| 0.05% - 0.20% | Low | A |
| 0.20% - 0.75% | Moderate | Baa |
| 0.75% - 2.00% | Elevated | Ba |
| 2.00% - 5.00% | High | B |
| 5.00% - 15.00% | Very High | Caa |
| 15.00%+ | Distressed | Ca - C |

**Key Insights:**
- EDF is forward-looking (market-based)
- Ratings are often lagging indicators
- EDF can signal deterioration before rating changes
- Compare EDF to peers for relative credit risk

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**8. Error Handling**

**Common Errors:**
| Error | Cause | Solution |
|-------|-------|----------|
| #VALUE! | Invalid identifier | Verify ticker, CUSIP, or ISIN |
| #N/A | No coverage | Company may not be in database |
| #REF! | Invalid metric | Check metric name spelling |
| 0 or blank | No data | Metric may not be available for entity |
| Old date | Stale data | Check company is still public/active |

**Debugging Tips:**
1. Verify company is publicly traded
2. Try alternate identifier (CUSIP vs ticker)
3. Check metric name is exact match
4. For historical data, verify date format (MM/DD/YYYY)
5. Some metrics only available for certain entity types

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**Final Checklist:**
- Is the company publicly traded and covered?
- What identifier format? (Ticker, CUSIP, ISIN)
- What credit metric? (EDF, rating, LGD, spread)
- Is this current data (MADS) or historical (MADR)?
- For time series, are dates in MM/DD/YYYY format?
- Is the Moody's Analytics add-in connected?
- Do you have appropriate subscription access?

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**Additional Resources:**
- Moody's Analytics Platform: https://www.moodysanalytics.com/
- CreditEdge Documentation: https://www.moodysanalytics.com/product-list/creditedge
- EDF Methodology: https://www.moodysanalytics.com/product-list/edf-expected-default-frequency
- Excel Add-in Support: Contact Moody's Analytics support
