[Verse 1]
Once upon a time a bond was born
With triple A, the highest grade
But time moves on and things can change
As markets shift and fortunes fade
The rating agencies watch and see
How companies perform each year
Sometimes they climb, sometimes they fall
Migration patterns crystal clear
[Chorus]
Up and down the ladder goes
Rating migration, that's how it flows
Triple A to double B
Changes in credit quality
Watch the notches rise and fall
Migration matters most of all
Upgrades good and downgrades bad
Know the trends and you'll be glad
[Verse 2]
Investment grade starts triple A
Then double A and single A
Triple B is still okay
But double B means higher pay
For taking risk on riskier debt
As ratings slide from good to poor
Default risk grows more and more
Migration tells us what's in store
[Chorus]
Up and down the ladder goes
Rating migration, that's how it flows
Triple A to double B
Changes in credit quality
Watch the notches rise and fall
Migration matters most of all
Upgrades good and downgrades bad
Know the trends and you'll be glad
[Bridge]
Economic cycles drive the change
When times are good, upgrades arrange
But when recession comes to call
Downgrades happen, ratings fall
Investment grade to junk can slip
One notch down is just a blip
But watch for trends across the years
Migration data makes things clear
[Verse 3]
For investors here's the key
Migration shows probability
If ratings trend consistently down
Sell before you hit the ground
But steady ratings, stable firms
Give confidence in longer terms
Historical patterns guide our way
Migration data saves the day
[Chorus]
Up and down the ladder goes
Rating migration, that's how it flows
Triple A to double B
Changes in credit quality
Watch the notches rise and fall
Migration matters most of all
Upgrades good and downgrades bad
Know the trends and you'll be glad
[Outro]
Rating changes through the years
Migration patterns make things clear
From triple A to single D
Credit quality's history
Watch the ladder, know the game
Migration's more than just a name