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.
References in periodicals archive ?
Standard & Poors Ratings Services said last week that it had raised its debt rating for The McClatchy Co.
Standard & Poor's Ratings Services (S&P), New York, New York, USA, said in a July 9 report, the credit quality of global forest products companies is likely to remain under pressure in the near term, resulting from continued weak market conditions for most paper and paperboard grades.
Similarly, it will not wish to counteract the government's counter-cycle fiscal policy, yet it may need to keep liquidity conditions tight to support the tenge, said the Ratings Services.
While the rapid buildup of government debt since 2007-2008--and the resulting large deficits in many rated sovereigns--focused increasing attention on age-related spending, a number of sovereigns' budget-restraint strategies have included overhauls of public pension or health care systems--the two largest components of age-related programmes that typically account for about 40 per cent of government spending, according to a report released today (25 March) by Standard & Poor's Ratings Services.
Summary: PARIS (Standard & Poor's) March 20, 2009--Standard & Poor's Ratings Services said today that it has assigned its 'A' rating to State of Israel's new US$1.5 billion global bond issue, maturing March 26, 2019.
Last year one of the other leading debt ratings services, Standard & Poors, assigned McClatchy a rating of "BBB," which puts it in the 66-100 percentile of its adequate ratings.
Standard & Poor's Ratings Services have significantly lowered its economic growth outlook for Kazakhstan to 1.5% of GDP in 2015 and 2% in 2016, from 4.3% and 4.5% because of lower oil prices.
Summary: Standard & Poor's Ratings Services said today it placed its 'A-' long-term counterparty credit and insurer financial strength ratings on United Arab Emirates (UAE)-based composite insurer Oman Insurance Co.