What is a good financial rating?
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U.S. reached 714.
The S&P Insurer Financial Strength Rating system indicates whether an insurance company has sufficient assets to pay its claims. The highest S&P rating is AAA. AA, A, or BBB are considered acceptable ratings. Consumers can compare an insurer's rating from four sources.
A+/A1 are credit ratings produced by ratings agencies S&P and Moody's. Both A+ and A1 fall in the middle of the investment-grade category, indicating some but low credit risk. Credit ratings are used by investors to gauge the creditworthiness of issuers, with better credit ratings corresponding to lower interest rates.
B++, B+ Good Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations. B, B- Fair Assigned to companies that have, in our opinion, a fair ability to meet their ongoing insurance obliga- tions.
- AAA. Highest credit quality. 'AAA' ratings denote the lowest expectation of default risk. ...
- AA. Very high credit quality. ...
- A. High credit quality. ...
- BBB. Good credit quality. ...
- BB. Speculative. ...
- B. Highly speculative. ...
- CCC. Substantial credit risk. ...
- CC. Very high levels of credit risk.
Rank 4 (Below Average): These stocks, as a group, are expected to have below-average relative price performance (approximately 300 stocks).
Five independent agencies—A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA), Moody's and Standard & Poor's—rate the financial strength of insurance companies. Each has its own rating scale, its own rating standards, its own population of rated companies, and its own distribution of companies across its scale.
For example, with S&P and Fitch, a rating of AA+ is better than AA, and a rating of AA- is worse than AA but better than A+. Moody's uses numbers to indicate relative quality, with Aa1 being the best Aa rating, followed by Aa2 and Aa3.
These ratings signify that the issuer is relatively risky, with a higher-than-average chance of default. B1/B+ are ratings below investment grade but still one of the highest ratings in the non-investment grade bracket.
'AA' rated entities and instruments demonstrate very high credit quality with a very low default risk. 'A' rated entities and instruments demonstrate high credit quality with a low default risk.
What is the S&P rating scale?
The scale runs from AAA to D and intermediate ratings of (+) or (-) are offered at each level between AA and CCC (for example, BBB+, BBB and BBB-). S&P may also offer guidance (referred to as a credit watch) on whether it is likely to be upgraded (positive), downgraded (negative) or uncertain (neutral).
BB+ credit rating is a notch above BB, which is a slightly lower credit risk, and BB- credit rating is a notch below BB, and a slightly higher credit risk. Note that BB+, BB and BB- are credit ratings specific to Standard & Poor and Fitch credit agencies.
Those with highly speculative ratings, like B, are deemed riskier for investors compared to investment-grade companies. They're given to entities that may have trouble paying their debts, or start-ups with only a limited track record.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
The major credit rating agencies are Fitch Ratings, Moody's, and S&P Global. These agencies research and analyze a firm's financials and assign it a corporate credit rating. The ratings are intended to provide investors with information about the financial stability of issuers of debt-based investments.
Bank ratings are generally between 1 and 5 – with 1 being the best and 5 being the worst. Bank ratings are computed using the CAMELS rating system, a globally recognized rating system that measures the financial soundness of financial institutions based on six factors.
In the context of Ivy League schools, like Yale and Harvard, a good class rank is typically one that places a student within the top 5-10% of their graduating class. It is crucial to understand that Ivy League admissions are highly competitive, with thousands of qualified applicants vying for a limited number of spots.
A “really good” class rank is typically considered to be in the top 25% of your class and to be in the top 10% is considered “highly competitive” or “excellent.” Think of it as a friendly competition between you and all of your classmates.
Top Half: Try to be in the upper half of your class. If you're in a class of 500, aim to be ranked 250 or higher. This shows you're doing better than most of your classmates. Top 25%: If you're looking at moderately competitive colleges, being in the top 25% is a good goal.
Who is the most trusted insurance company?
| Company | Forbes Advisor Rating | Our expert take |
|---|---|---|
| Nationwide | 5.0 | Best overall |
| USAA | 4.8 | Best for military members and veterans |
| Travelers | 4.7 | Great for drivers with speeding tickets |
| Erie | 4.6 | Best for drivers who caused an accident |
| Insurance Company | Best for | Bankrate Score |
|---|---|---|
| USAA | Best overall | 4.7 Rating: 4.7 stars out of 5 |
| Allstate | Best overall | 4.2 Rating: 4.2 stars out of 5 |
| Lemonade | Best for digital experience | 3.8 Rating: 3.8 stars out of 5 |
| Chubb | Best for high-value home coverage | 4.3 Rating: 4.3 stars out of 5 |
Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds.
BBB/Baa is the lowest rating that qualifies for commercial bank investments. It's a borderline group for which, in Standard & Poor's words, adverse economic conditions or changing circ*mstances are more likely to lead to a weakened capacity to pay interest and repay principal than for bonds in higher-rated categories.
The S&P and Fitch AAA ratings are the highest assigned to any debt issuer. An AAA rating is the equivalent of the Aaa rating issued by Moody's. AAA ratings are issued to investment-grade debt that has a high level of creditworthiness with the strongest capacity to repay investors.
