Rating definitions

Insurer Financial Strength Rating

An Insurer Financial Strength Rating is a current opinion of the financial security characteristics of an insurance organization with respect to its ability to pay under its insurance policies and contracts in accordance with their terms. Insurer Financial Strength Ratings are based on information furnished by rated organizations or obtained by rating agencies from other sources it considers reliable. Insurer Financial Strength Ratings do not refer to an organization's ability to meet non-policy (i.e. debt) obligations.

Issue credit rating

An issue credit rating is a current opinion of the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings on medium term note programs and commercial paper programs). It takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in which the obligation is denominated. Issue credit ratings are based on current information furnished by the obligors or obtained by rating agencies from other sources it considers reliable. Issue credit ratings can be either long-term or short-term.