Definitions for "Rating agency"
In the insurance industry, an independent organization that evaluates the financial condition of insurers and provides information to potential customers of and investors in insurance companies.
A firm that evaluates the financial quality of institutions’ debt, the claims-paying ability of life insurers, and the deposit credit rating of banks. Examples of Nationally Recognized Statistical Rating Organizations (NRSRO) include A.M. Best, Moody’s Investors Service, and Standard & Poor’s (S&P) Ratings Group.
A company which rates debt and preferred stock issues for safety of payment of principal, interest, or dividends. Ratings range from AAA or Aaa (the highest) to C or D, which represents a company that has already defaulted. E.g. Standard & Poor's or Moody's.
An agency which analyzes new and outstanding bond issues to assign a rating of comparative quality.
The institutions which assign credit rating to debt obligations on the basis of investigation and analysis of the transaction and the issuer characteristics.