Nationally Recognized Statistical Ratings Organization - NRSRO

AAA

DEFINITION of 'Nationally Recognized Statistical Ratings Organization - NRSRO'

The formal term to describe credit rating agencies that provide credit ratings that are used by the U.S. government in several regulatory areas. Ratings provided by Nationally Recognized Statistical Ratings Organizations (NRSRO) are used frequently by investors and are used as benchmarks by federal and state agencies. Generally, to be considered an NRSRO, the agency has to be "nationally recognized" in the U.S. and provide reliable and credible ratings. Also taken into consideration is the size of the credit rating agency, operational capability and its credit rating process.

INVESTOPEDIA EXPLAINS 'Nationally Recognized Statistical Ratings Organization - NRSRO'

Some examples of Nationally Recognized Statistical Ratings Organizations (NRSRO) include Moody's Investors Service Inc, Standard and Poor's Inc, Fitch Inc, Dominion Bond Rating Service Limited (DBRS), and A.M. Best Company Inc.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Moody's

    An independent, unaffiliated research company that rates fixed ...
  3. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  4. Moody's Bond Survey

    A weekly publication that reports changes in corporate bond quality ...
  5. Prime Credit

    A credit score that falls into the range that is one step down ...
  6. Super-Prime Credit

    Consumers with super-prime credit are considered to have excellent ...
RELATED FAQS
  1. Why should I consider looking for the A.M. Best rating before investing in an insurance ...

    An investor considering equity investments in the insurance industry is well advised to check the A.M. Best rating, because ... Read Full Answer >>
  2. What risk factors should investors consider before purchasing a callable bond?

    A number of risk components should be considered in regard to any bond investment since bonds, like any investment, do carry ... Read Full Answer >>
  3. 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 >>
  4. How much risk is associated with subprime mortgages?

    A large amount of risk is associated with subprime mortgages. Since the mortgages are specifically for people who do not ... Read Full Answer >>
  5. What are the highest-yielding investment grade bonds?

    The investment grade bonds with the highest yield are all corporate bonds rated either BBB or Baa, depending on the credit ... Read Full Answer >>
  6. How are junk bonds rated differently by Standard & Poor's and Moody's?

    Standard & Poor’s and Moody’s give junk bonds lower credit ratings than investment grade bonds. Standard and Poor’s gives ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

    Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.
  2. Bonds & Fixed Income

    Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
  3. Bonds & Fixed Income

    Tactical Tips For Bond Investors

    Profit from long-term market trends by buying bonds when other investors shy away.
  4. Personal Finance

    The Debt Ratings Debate

    Lack of competition and potential conflicts of interest have called the value of these ratings into question.
  5. Bonds & Fixed Income

    Why Bad Bonds Get Good Ratings

    Credit ratings are not the only tool to rely on when assessing bonds. Find out why they sometimes fall short.
  6. Credit & Loans

    Explaining Credit Ratings

    A credit rating is a third-party assessment about the creditworthiness of an individual or entity.
  7. Investing Basics

    What's a High-Yield Bond?

    A high-yield bond is a bond issued by a company with a very low credit rating.
  8. Credit & Loans

    How To Increase Your Appeal To Prospective Lenders

    Making a business eligible for loans/credit cards at the best possible rates requires crafting an excellent credit profile through the smart use of credit.
  9. Economics

    Post-Election Opportunities For Nigerian Oil

    Nigeria has an historic opportunity to reform and improve its oil industry now that elections are over.
  10. Economics

    The Fed's Impact On Emerging Markets

    Higher US interest rates could make it more expensive for emerging market borrowers to service their debt commitments.

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!