Ratings Service

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bank Rating

    Ratings provided to the public by the Federal Deposit Insurance ...
  2. A-/A3

    This is generally the third- or fourth-highest rating that a ...
  3. Default Model

    A type of model used by financial institutions to determine the ...
  4. Credit Analysis

    A type of analysis an investor or bond portfolio manager performs ...
  5. Notching

    When rating agencies reduce their ratings on structured financial ...
  6. AAA

    The highest possible rating assigned to the bonds of an issuer ...
Related Articles
  1. Research Report Red Flags For Brokers
    Professionals

    Research Report Red Flags For Brokers

  2. Stock Ratings: The Good, The Bad And ...
    Retirement

    Stock Ratings: The Good, The Bad And ...

  3. Mutual Fund Ratings: Are They Deceiving?
    Mutual Funds & ETFs

    Mutual Fund Ratings: Are They Deceiving?

  4. Are high-yield bonds better investments ...
    Investing

    Are high-yield bonds better investments ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center