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 ?
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.
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.
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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--Standard & Poor's Ratings Services today assigned its 'AAA' preliminary ratings to Battery Park City Authority's $400 million senior revenue bonds series 2003A.
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.
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