Rating Information

Certain independent agencies, prominent among them being S&P (Standard & Poor), A.M. Best, Moody’s and Fitch — specialise in rating the financial strength of insurers and reinsurers. They follow their independent rating scale, rating standards, population of rated companies and distribution of companies across their scale. Rating is often shown in coded form that comprise of a specific combination of characters denoting the financial strength.  These abbreviations are defined by these Companies and are popular among the global insurance community.

Since the yardsticks adopted by these rating agencies vary from each other, the financial strength as rated by one of them need not necessarily match with that of others.  This often prompts the market watchers to evolve their own monitoring system that considers, among others, the rating by multiple agencies.

It may be noted that comparison of rating codes of these agencies may often lead to misunderstanding as some look-alike characters codified by these companies have altogether different implications.  For instance, A+ rating from A.M.Best is the second highest among its categories numbering 15 whereas the same A+ rated by Fitch or S&P down below the line.  There is no 'A' rating by Moody's.

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