This is generally the highest rating assigned to a non-investment grade security or carrier. This rating signifies that the security or carrier is not creditworthy enough to be considered as an investment, and is therefore considered speculative. Investors or policyowners are taking a higher level of risk with this entity.


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. Moody's

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

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

    A company, such as Moody's or Standard & Poor's, that rates ...
  5. Fitch Ratings

    An international credit rating agency based out of New York City ...
  6. Horizontal Line

    A line that appears to proceed from left to right, or parallel ...
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