Credit Rating Agency

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Credit Rating Agency

A company that provides investors with assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. A high rating indicates low risk and may therefore encourage investors to buy a security. Additionally, banks may only invest in securities with a high rating from two or more credit rating agencies. The SEC recognizes 10 firms as credit rating agencies; Fitch, S&P, and Moody's are the three most prominent. However, the methods of credit ratings agencies have been subject to criticism. For example, most agencies gave high-risk mortgage-backed securities top ratings until they defaulted at the collapse of the housing bubble.
References in periodicals archive ?
Legislation enacted in 2012 seems to have lowered Workers' Comp costs in California, according to a new report from the Workers' Compensation Insurance Rating Bureau (WCIRB) of California.
The water tender will support the fire district maintain its rating with the Washington Surveying and Rating Bureau.
It would keep the state's rating bureau but allow insurers to opt out and determine rates individually.
Summary: Credit rating bureau for banks, financial firms; Services to later be extended to telecom, insurance firms
The FNC, a parliamentary body which monitors and debates the government policy but cannot initiate any legislation by itself, passed the credit rating bureau bill last year.
In 2007, the Workers' Compensation Insurance Rating Bureau, a government entity that oversees job classifications in California, undertook a study to determine if there were classification errors among 219 large companies.
There was always a need for a credit rating bureau, and what the downturn and the new decree have done is create a formal structure for it to operate to full potential.
The National Council on Compensation Insurance (NCCI) is the major rating bureau used in most states and the District of Columbia.
According to the Workers' Compensation Insurance Rating Bureau, the total cost of workers' comp in California, including both insured and self-insured businesses, grew from $9 billion in 1995 to $29 billion in 2003, despite serving fewer workers.
The nurse submitted various documents to the arbitrator, including letters from the Workers' Compensation Insurance Rating Bureau and the Department of Industrial Relations indicating that there was no record the hospital was either privately insured or permissively self-insured during 1995 and 1996.
In the first quarter of 2002-the most recent statistics available--employers on average paid 21 percent more for workers' comp coverage than they did a year earlier, according to the Workers' Compensation Insurance Rating Bureau of California, a trade group that analyzes data and recommends pure premium rates to the state Department of Insurance.
The NCCI, or National Council on Compensation Insurance, is the rating bureau that creates the classifications, but sometimes the categories are misapplied by insurance carriers.