Rating service

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Rating Service

A company that evaluates preferred stocks and debt securities based on the likelihood of default. The ratings service provides an objective rating to the security; the rating is higher when the likelihood of default is lower. There are three main ratings services: Moody's, Fitch, and Standard & Poor's. Companies issuing new preferred stocks or debt securities pay one or more of the ratings services to have their securities rated. Banks are not allowed to invest in securities with ratings below a certain level. See also: Investment-grade, Junk.

Rating service.

A rating service, such as A.M. Best, Moody's Investors Service, or Standard & Poor's, evaluates bond issuers to determine the level of risk they pose to would-be investors.

Though each rating service focuses on somewhat different criteria in making its evaluation, the assessments tend to agree on which investments pose the least default risk and which pose the most.

These rating services also evaluate insurance companies, including those offering fixed annuities and life insurance, in terms of how likely a provider is to meet its financial obligations to policyholders.

References in periodicals archive ?
That, in turn, would provide more choice for issuers and lower costs for rating services.
The new approach actually looks at six different rating services and, therefore, any idiosyncracies associated with a particular rating service do not skew the evaluation based on temporary events.
Standard & Poor's--Standard & Poor's Rating Services today placed its 'BBB+' rating on the class B notes issued by Paper Bond Ltd.
Standard & Poor's Rating Services said today it has assigned its 'A-1' rating to Maroon Securities No.
Standard & Poor's Rating Services said today that it lowered its counterparty credit and financial strength ratings on SAIF Corp.
19, 2003--Standard & Poor's Rating Services today assigned its 'BBB-' rating to Structured Asset Trust Unit Repackagings (SATURNS) Sprint Capital Corp.
7, 2003--Standard & Poor's Rating Services said today it had assigned its 'A-1+' rating to SPEAR Securitisation Ltd.
Standard & Poor's Rating Services today assigned its double-'A' rating to Structured Asset Trust Unit Repackagings (SATURNS) AIG Capital Security Backed Series 2002-11's $39.
11, 2002--Standard & Poor's Rating Services said today that it had affirmed its 'A-1'-plus rating on the Series 1 commercial paper issued by Silver Bullet Securitisation Pty.
20, 2002-- Standard & Poor's Rating Services today assigned its double-'A'-minus rating to Structured Asset Trust Unit Repackagings (SATURNS) CSFB USA Debenture Backed Series 2002-10's $33.
Today, in response to inquiries regarding the July 25, 2002, media release, "S&P: Report Examines Changes in US 'AAA' Corporate Ratings," Standard & Poor's Rating Services issued the following:
Standard & Poor's Rating Services today assigned its single-'A'-plus rating to Structured Asset Trust Unit Repackagings (SATURNS) Verizon Global Funding Debenture Backed Series 2002-9's $43.