DEFINITION of 'Ratings Service'

A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends.

BREAKING DOWN 'Ratings Service'

Ratings range from AAA or Aaa (the highest) to C or D, which represents a company that has already defaulted.

RELATED TERMS
  1. Rating

    1. An evaluation of a corporate or municipal bond's relative ...
  2. Moody's

    An independent, unaffiliated research company that rates fixed ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer ...
  4. Corporate Credit Rating

    The opinion of an independent agency regarding the likelihood ...
  5. Insurance Company Credit Rating ...

    The opinion of an independent agency regarding the financial ...
  6. Preferred Dividend

    A dividend that is accrued and paid on a company's preferred ...
Related Articles
  1. Investing

    Which 2 U.S. Companies Are Still Rated AAA? (JNJ)

    If there are only two U.S. companies with a AAA rating, then they should definitely be on your watch list.
  2. Investing

    What Is the Value of a AAA Credit Rating? (XOM)

    Following the Exxon credit rating downgrade, investor's are asking is there any value in even having a AAA credit rating?
  3. Investing

    Microsoft LinkedIn Deal: Could it Cost their Aaa?

    If Microsoft does lose its Aaa rating, this will leave Johnson & Johnson as the only non-financial company with an unblemished Aaa rating.
  4. Investing

    The Debt Ratings Debate

    Lack of competition and potential conflicts of interest have called the value of these ratings into question.
  5. Investing

    A Primer On Preferred Stocks

    Offering both income and relative security, these uncommon shares may work for you.
  6. Investing

    What Is A Corporate Credit Rating?

    Is the bond you're buying investment grade, or just junk? Find out how to check the score.
  7. Investing

    Moody’s Cuts Singapore Banking Outlook to Negative

    Moody’s Investors Services cut the outlook for Singapore’s Banking industry to negative citing high exposure to energy-related assets
  8. Investing

    Valuation Of A Preferred Stock

    Determining the value of a preferred stock is important for your portfolio. Learn how it's done.
  9. Managing Wealth

    Analyzing GE's Preferred Stock (GE)

    Learn why General Electric Company's new Series D Perpetual Preferred stock is an excellent choice for investors desiring a safe and steady income stream.
  10. Managing Wealth

    Valuation Of A Preferred Stock

    To find the value of the preferred stock, each future dividend payment needs to be discounted back to the present, and then added together.
RELATED FAQS
  1. Does a good credit rating guarantee repayment?

    Learn how credit ratings help investors determine the creditworthiness of an issuer and the risk associated with making an ... Read Answer >>
  2. How can I tell if a security is considered investment grade?

    Understand how Standard & Poor's and Moody's rates securities. Learn what types of ratings types go into evaluating the investment ... Read Answer >>
  3. What are the highest-yielding investment grade bonds?

    Learn how Standard & Poor's and Moody's rate bonds. Understand what investment grade bonds offer the best yield. Read Answer >>
  4. Why do companies issue preferred stock?

    Learn why companies issue preferred stock in addition to the more widely known common stock, and how it may be beneficial ... Read Answer >>
  5. What are some examples of preferred stock, and why do companies issue it?

    Understand the difference between preferred stock and common stock, and learn the primary reasons why companies issue preferred ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center