Nationally Recognized Statistical Ratings Organization - NRSRO

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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.

BREAKING DOWN '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.

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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 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 >>
  4. 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 >>
  5. 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 >>
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