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 ?
Standard & Poor's Ratings Services has assigned its 'A-' long-term counterparty credit and insurer financial strength ratings to Emirates Insurance Co.
Arbitron will continue to operate local market television ratings services in six markets using ScanAmerica technology.
Nielsen is particularly interested in using the PPM to add a measure of out-of-home television viewing to their existing television ratings services.
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.
Standard & Poor's Ratings Services said today that it withdrew its 'A-' counterparty credit and financial strength ratings on Industrial Valley Title Insurance Co.
Standard & Poor's--Standard & Poor's Ratings Services today assigned its 'A-1+' rating to Restructured Asset Certificates with Enhanced Returns Series 2003-13-C Trust's (RACERS) $160 million credit-linked certificates series 2003-13-C.
Standard & Poor's--Standard & Poor's Ratings Services today assigned its 'A+' rating to Structured Asset Trust Unit Repackagings (SATURNS) Credit Suisse First Boston (USA) Inc.
Standard & Poor's--Standard & Poor's Ratings Services said today that it withdrew its 'A-1' credit rating on ABCP program Prometix Ltd.