Shortcut Navigation:

How Insurance Companies Are Rated

Insurance companies are rated by five major rating services. Each service uses its own criteria to issue a "report card" for the companies it rates. Although each service uses an alphabetical rating scale, an A+ from one service may not mean the same as an A+ from another. The following chart lists the ratings available from the five companies and groups them by rating strength.

Rating description Rating services
A. M. Best Fitch Moody's Standard & Poor's TheStreet.com
Superior
minimal risk of financial instability, most able to meet claim obligations.
A++
A+
AAA Aaa AAA A+
Excellent
financially strong with excellent claims-paying ability.
A
A-
AA+
AA
AA-
Aa1
Aa2
Aa3
AA+
AA
AA-
A
A-
Good
good claims-paying ability, stronger than the average company.
B++
B+
A+
A
A-
A1
A2
A3
A+
A
A-
B+
B
B-
Adequate
higher risk than "good" rating.
B
B-
BBB+
BBB
BBB-
Baa1
Baa2
Baa3
BBB+
BBB
BBB-
C+
C
C-
Below Average
below-average claims-paying ability and financial strength.
C++
C+
BB+
BB
BB-
Ba1
Ba2
Ba3
BB+
BB
BB-
D+
D
D-
Financially Weak
high degree of risk, vulnerable to default.
C
C-
D
B+
B
B-
B1
B2
B3
B+
B
B-
E+
E
E-
Nonviable
extremely risky, in or near default.
E
F
CCC
CC
C
DDD
DD
D
Caa
Ca
C
CCC
CC
R
F

To get rating information, visit the rating services' websites or call their customer service departments. Most rating services provide free rating information to consumers, although you may have to pay if you need more than a few ratings. Ratings can be found in books and magazines available at your local library. You can also ask your insurance agent or broker for rating information.