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 ?
Launched in November 1991 with a sample of 1000 households drawn from five major markets, the ScanAmerica network television ratings service used a combination of people meters and in-home scanner wands to simultaneously measure network television viewing and purchases of packaged goods.
NYSE:ARB) today announced an update to the rollout schedule for the Portable People Meter(TM) ratings service that it previously released in March 2006.
4 /PRNewswire/ -- The Arbitron Company introduces ScanAmerica, the network television ratings service that measures who is watching network programs and the products the viewers buy.
On February 28, 2006, Nielsen Media Research did not exercise its option to participate in a commercial deployment of the Arbitron Portable People Meter as a radio and television ratings service in local markets in the United States.
The comScore Arbitron Online Radio Ratings service is based on a subset of approximately 200,000 U.
as a new radio network provider for the company's RADAR(R) network radio ratings service.
Standard & Poor's Ratings Services has assigned its 'A-' long-term counterparty credit and insurer financial strength ratings to Emirates Insurance Co.
Standard & Poor's--Standard & Poor's Ratings Services said today that it affirmed its 'BB+' long-term and 'B' short-term sovereign credit ratings on the Republic of El Salvador.
Biovail Corporation (NYSE:BVF)(TSX:BVF) today provided the following comments with respect to statements from both Moody's Investors Service and Standard and Poor's Ratings Services.
Standard & Poor's Ratings Services said today that it had assigned its 'AAA' rating to Okinawa Credit Service Co.
Standard & Poor's Ratings Services said today that it affirmed it's 'A' counterparty credit ratings on Farmers Insurance Exchange, Farmer's Exchange Capital, and related companies (collectively Farmers) and its 'A' financial strength ratings on Farmers Insurance Exchange and related units.
Standard & Poor's Ratings Services today lowered its rating on Marylebone Road CBO 1 Ltd.