Rating service

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 ?
Lot 5 is for the provision of non-domestic rating services, A revaluation rating service.
MSO is a national property/casualty rating service bureau, providing product development and rating services to the insurance industry since 1944.
WEST HARTFORD, Conn: OneWorld Instech announced the introduction and immediate availability of its OneWorld Instech Rating Service.
It's a lesson the nation's wealthiest state--Connecticut--and its least wealthy -Mississippi--have learned after Fitch Rating Service handed the two states "negative" debt outlooks.
The rating service expects the figure to drop to close to 25 percent this year on a pro forma basis.
The credit rating service agreement between Bulgaria and JCRA was signed in 2005; it expired on June 30, 2007, but gets automatically renewed each year unless another agreement is negotiated.
22 December 2010 - Caribbean rating service Caricris has kept its CariBBB ratings to the USD15m (EUR11.4m) notional debt of Saint Lucia Electricity Services.
A view of Uruguay's economic performance was advanced slightly by Fitch Ratings, the global rating service. Uruguay moved from "stable" to "positive"-meaning that a credit upgrade is possible over the next six months, mostly as a result of "prudent economic policy settings through what could have been a difficult political transition."
Fitch Ratings and Dominon Bond Rating Service Limited (DBRS) have signed up to the voluntary International Organisation of Securities Commissions (IOSCO) code of conduct.
The rating service company also affirmed its ratings on supermarket operator Ito-Yokado Co., Seven-Eleven Japan and IY Bank -- all under the wing of Seven & I Holdings.
The produce value chain component will be led by Robb Bertels, vice president, publishing director, and will include the existing produce division and add responsibilities for Redbook Credit Rating Service, The Grower and Citrus & Vegetable publications.
For example, Standard & Poor's, a New York-based credit rating service, said that the outlook for credit quality among U.S.-based forest products companies remains fairly negative.