Ratings
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.
Moody's
Fitch
A.M. Best
A Changing Variable Annuity Landscape -- What to Watch for in the Next Few Years
This is the second part of an interview with...