Rating


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Related to Rating: credit rating

Rating

1. See: Bond rating.

2. See: Credit score.

rating

The grading of a security with respect to a characteristic or a set of characteristics such as safety and growth. Rating is most often applied to debt securities, which are graded according to the issuer's ability to pay interest and principal when due. See also bond rating, downgrading, Moody's Investment Grade, not rated, stock rating, upgrading.

Rating.

Rating means evaluating a company, security, or investment product to determine how well it meets a specific set of objective criteria.

For example, a bond issue may be rated along a spectrum from highest quality investment grade to speculative, or from AAA to D.

Rating typically affects the interest rate a fixed-income security must pay to attract investors, forcing lower-rated bond issuers to pay higher rates. Other investors may shun low-rated investments entirely, unwilling to take the risk that the issuer might default. However, ratings are not infallible, even in industries, such as insurance, that are regularly scrutinized.

Rating differs from ranking, which assigns the relative standing of two or more similar items in relation to each other.

References in periodicals archive ?
2nd Debenture Issuance (BRL150 million) due 2011: To 'A+(bra)' Rating Outlook Stable, from 'A(bra)' Rating Outlook Stable
Against this backdrop, underlying structured finance collateral - both consumer and corporate - generally also delivered solid results and continued to support an environment of more upgrades than downgrades in structured finance,' said Stephanie Mah, Senior Director, Credit Market Research, Fitch Ratings.
The implementation of the new ratings standards was done concurrently for most insurance sectors globally, and follows the publication of an exposure draft of the noted methodology report on Dec.
Foreign Currency; 'BB'; 'BB+', Rating Outlook Positive
Rating Outlook Negative (removed from Rating Watch Negative).
established in 1899, is the world's oldest and most authoritative insurance rating and information source.
2%, respectively, of the combination of S&P/Fitch and Moody's/Fitch ratings were exactly the same or within one notch;
Greater details on Fitch's new guidelines governing notching of issue ratings relative to the IDR, as well as the notching between Insurer Financial Strength Ratings (IFS) at an operating company level and debt ratings at a holding company level are available in the noted methodology report.
Fitch is implementing these new ratings standards concurrently for most insurance sectors globally, following the publication of an exposure draft of the noted methodology report on Dec.
More than a decade ago the Europeans missed their chance to establish a major rating agency more attuned to the bank-based financial systems prevailing in Europe rather than the capital market-based financial system and the highly developed equity culture of the United States.
Many insurers have multiple rating engines in use throughout their companies, which inhibit real-time pricing, quoting and issuance.