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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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Clear Channel Radio has reach an agreement with the Arbitron Co., putting the Little Rock market back on the ratings service list of subscribers, said John Signaigo, vice president and general manager.
At the present time, the services that are accredited are: Arbitron Television Market Reports and Arbitron Radio Market Reports; Mediafax, a TV ratings service in Puerto Rico; the Nielsen Station Index, the Nielsen Meter Market Service, and the Nielsen Television Index which includes its People Meter Service; RADAR, published by Statistical Research Inc.