Rating service

(redirected from Bond Rating Agencies)

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 ?
WORCESTER -- The three bond rating agencies used by the city to review its fiscal health have affirmed their previous bond ratings for Worcester's municipal government.
SAN ANTONIO, July 25, 2014 /PRNewswire-USNewswire/ -- The City of San Antonio's 'AAA' general obligation bond rating has been re-affirmed by the three major bond rating agencies - Standard & Poor's, Fitch and Moody's - for the fifth time since 2010.
Rice University political science professor Bob Stein offered a rundown of what bond rating agencies look for when they give out those ratings.
MIA s strong performance helped maintain A ratings and stable financial outlooks with all three major bond rating agencies for a July bond sale that is expected to be the final financing necessary to finish the airport s Capital Improvement Program.
Independent bond rating agencies have upgraded our financial status 11 straight times.
Moody's Investor Services and Standard & Poor's--the two major bond rating agencies in the United States-downgraded G-P's bonds to "junk bond status" this past fall.
Weighs in the state's favor with bond rating agencies.
As a result of the budget impasse, Tennessee received a credit downgrade from AAA to AA from two bond rating agencies.
An austerity minded combination of budget hawks within the Japanese bureaucracy, impatient advocates of structural reform provoking a sense of crisis, and bond rating agencies trying to demonstrate that this time they are ahead of the curve, have all added uncertainty to the JGB market.
We want to make sure the concerns of the bond rating agencies are alleviated,'' Martin said.
Default risk can be lessened by diversifying the portfolio and purchasing bonds with higher ratings from bond rating agencies such as Moody's Bond Record.
During fiscal year 2005, all three major bond rating agencies -- Standard & Poor's, Fitch Ratings, and Moody's Investor Services -- upgraded CHW's bonds to "A-", reflecting significant confidence by bondholders in the organization's present operations and its future.