Ratings are a form of financial analysis applied to a variety of corporations, securities, governments and other entities. For example, an insurance company rating is a measure of financial strength and the ability of of an insurance company to meet its obligations. Ratings are provided by third-party rating agencies such as A.M. Best, Standard and Poor’s, Moody’s and Fitch. These third party rating agencies assign grades to the entity or security they are analyzing. For example, high quality, which are considered the least riskiest, get an AAA rating whereas bonds with a BB or less are considered highly risky junk bonds. The lower the rating, the more the issuer has to pay in terms of a coupon rate to attract buyers. Ratings are not static and can be downgraded or upgraded depending on the agency’s appraisal of the issuer’s or entity’s financial health.
Standard & Poor's is a leading provider of financial market intelligence. Standard & Poor's (S&P) is a credit and ratings firm that specializes in ratings, indices, equity research, risk solutions, investment advisory service and data services. Its branches are located throughout the world.
Northwestern Mutual is a mutual insurer that has been in operation since 1857. Northwestern Mutual offers products and services in the areas of insurance and investments. Specifically, the company offers products in the areas of life insurance, disability insurance, annuities, long-term care, mutual funds, financial planning, estate planning, trust services and other investment advisory services.
