|
AAA
|
Exceptionally
Strong. Insurers assigned this highest rating are viewed
as possessing exceptionally strong capacity to meet policyholder and
contract obligations. For such companies, risk factors are minimal
and the impact of any adverse business and economic factors is expected
to be extremely small. |
|
AA
|
Very
Strong. Insurers are viewed as possessing very strong capacity
to meet policyholder and contract obligations. Risk factors are modest,
and the impact of any adverse business and economic factors is expected
to be very small. |
|
A
|
Strong.
Insurers are viewed as possessing strong capacity to meet policyholder
and contract obligations. Risk factors are moderate, and the impact
of any adverse business and economic factors is expected to be small. |
|
BBB
|
Good.
Insurers are viewed as possessing good capacity to meet policyholder
and contract obligations. Risk factors are somewhat high, and the
impact of any adverse business and economic factors is expected to
be material, yet manageable. |
|
BB
|
Moderately
Weak. Insurers are viewed as moderately weak with an uncertain
capacity to meet policyholder and contract obligations. Though positive
factors are present, overall risk factors are high, and the impact
of any adverse business and economic factors is expected to be significant. |
|
B
|
Weak.
Insurers are viewed as weak with a poor capacity to meet policyholder
and contract obligations. Risk factors are very high, and the impact
of any adverse business and economic factors is expected to be very
significant. |
|
CCC,CC,C
|
Very
Weak. Insurers rated in any of these three categories are
viewed as very weak with a very poor capacity to meet policyholder
and contract obligations. Risk factors are extremely high, and the
impact of any adverse business and economic factors is expected to
be insurmountable. A 'CC' rating indicates that some form of insolvency
or liquidity impairment appears probable. A 'C' rating signals that
insolvency or a liquidity impairment appears imminent. |
|
DDD,
DD, D
|
Distressed. These ratings are assigned to insurers that have
either failed to make payments on their obligations in a timely manner,
are deemed to be insolvent, or have been subjected to some form of
regulatory intervention. Within the DDD-D range, those companies rated
'DDD' have the highest prospects for resumption of business operations
or, if liquidated or wound down, of having a vast majority of their
obligations to policyholders and contractholders ultimately paid off,
though on a delayed basis (with recoveries expected in the range of
90-100%). Those rated 'DD' show a much lower likelihood of ultimately
paying off material amounts of their obligations in a liquidation
or wind down scenario (in a range of 50-90%). Those rated 'D' are
ultimately expected to have very limited liquid assets available to
fund obligations, and therefore any ultimate payoffs would be quite
modest (at under 50%). |