One of the top ratings that a ratings agency assigns to an issuer or insurer. This rating signifies that the security or carrier has stable financial backing and ample cash reserves. The risk of default for investors or policyholders is very low.


The ratings assigned by the various ratings agencies are based primarily upon the insurer's or issuer's creditworthiness. This rating can therefore be interpreted as a direct measure of the probability of default. However, credit stability and priority of payment are also factored into the rating.

  1. A/A2

    Usually the second- or third-highest rating that a rating agency ...
  2. B1/B+

    Usually the lowest investment grade rating assigned to a security ...
  3. Ba1/BB+

    This is generally one of the lowest investment grade ratings ...
  4. Moody's

    An independent, unaffiliated research company that rates fixed ...
  5. Standard & Poor's - S&P

    The world's leading index provider and the foremost source of ...
  6. Ratings Service

    A company, such as Moody's or Standard & Poor's, that rates ...
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  1. Are high yield bonds a good investment?

    Bonds are rated according to their risk of default by independent credit rating agencies such as Moody's, Standard & ... Read Full Answer >>
  2. How can I use the funds from operations to total debt ratio to assess risk?

    The funds from operations (FFO) to total debt ratio is used in fundamental analysis to determine a company's financial risk. ... Read Full Answer >>
  3. How stable are municipal bonds?

    Stability is relative in the municipal bond market. Municipal bonds tend to be safer than many other types of investments, ... Read Full Answer >>
  4. Where can I find information about corporate bond issues?

    Information about new and existing corporate bond issues is published regularly in financial newspapers, such as The Wall ... Read Full Answer >>
  5. Why are high yield bonds typically lower rated bonds?

    The term "high-yield bond" is a bit of a misnomer. It is not the case that high-yield bonds tend to be lower-rated; instead, ... Read Full Answer >>
  6. How do I evaluate a debt security?

    Debt securities are a form of loan from an investor to the government or a business. Among the many different types of debt ... Read Full Answer >>

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