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 ?
Following the expected merger of BTA Insurance with Kazkommerts-Policy, we could reassess the company's status as an insulated insurance subsidiary," said the ratings service.
The ratings service maintained a negative outlook for Walgreens.
A credit ratings service and an investment research service signaled their belief in the newspaper business last week, issuing upgrades to two leading publicly traded newspaper firms.
The ratings service said the 'A-' bank loan rating and recovery rating of '2' on the company's EUR1.135bn senior secured bank facility were withdrawn.
About two-thirds of the 53 property/ casualty insurers studied in a recent report from Fitch Ratings Service showed improved underwriting performance in the first half of 2006, compared with the same period in 2005.
Looking ahead six months, the ratings service said that Uruguay's ability to sustain economic growth would come under scrutiny.
The success of our form ratings service deserves a higher profile.
BUENOS AIRES Ibope, Argentina's only ratings service, was back in action last week after suspending its service for three weeks when someone hacked into its database and revealed 25% of the homes it uses to measure what viewers watch.
This was a necessary move for PerkinElmer, but not sufficient to remove all the uncertainties regarding its financial well being, at least according to the ratings service. Improved business performance in the third and fourth quarters of 2002 would certainly ameliorate the situation.
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.