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 ?
Corporation (NYSE: FNB) has said that it has received a BBB+ rating from Kroll Bond Rating Agency.
Corporation, commented, "We are very pleased to announce the initiation of ratings from Kroll Bond Rating Agency as we continue to diversify F.
Kroll Bond Rating Agency Releases Aircraft Leasing Overview Kroll Bond Rating Agency (KBRA) announces the release of its Aircraft Leasing Overview.
NEW YORK -- Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings for the MSC 2013-ALTM transaction (see ratings list below).
The bond rating agency Standard & Poor's Ratings Services said Thursday it would give McClatchy's new bonds a "B" issue-level rating, which is one notch above the service's "B-minus" rating for the company's corporate credit rating.
About Kroll Bond Rating Agency - KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings.
WORCESTER - Two weeks after a major bond rating agency upgraded its assessment of the city's financial health, The Research Bureau has issued a report praising the city administration's commitment to damage-control financial management practices put in place last year.
STEVENSON RANCH - Earthquakes, economics and environmentalists pose risks that could sour the highly touted $990 million purchase of The Newhall Land and Farming Company, according to a Wall Street bond rating agency.
Fitch bond rating agency could revoke Mexico's investment-grade status if steps are not taken to complete structural reforms, Fitch Ratings Latin American Director William Hayes told local press in September.
Akio Mikuni, president of an independent bond rating agency in Tokyo, called the reforms "mostly cosmetic policy changes dished up largely for the purpose of mollifying Japan's trading partners.
NASDAQ: LTXB) (the "Company"), the holding company for LegacyTexas Bank (the "Bank"), today announced that the Company and the Bank have received investment grade ratings with a stable outlook from Kroll Bond Rating Agency ("KBRA").
The notes were assigned an investment grade rating of BBB by Kroll Bond Rating Agency.