Questions? 1.800.239.0356

X
1.800.239.0356
Back to Top

Insurance Company Ratings Explained

Because an insurance company’s ratings are an indicator of its financial strength and ability to honor its contractual obligations to policyholders, it should always be considered prior to purchasing any annuity. There are four main rating agencies: A.M. Best, Standard & Poor’s, Moody’s and Fitch. Each of these rating agencies use their own proprietary scale to rate an insurance company. Their rating refers only to the financial strength of the insurance company and is not a recommendation of a particular annuity product. Below you will find a table that outlines each of these four rating agencies letter grade scales and their meaning.

List of Possible Ratings

A.M. Best Standard & Poor's Moody's Fitch Ratings
1. A++
Superior
AAA
Extremely Strong
Aaa
Exceptional
AAA
Exceptionally Strong
2. A+
Superior
AA+
Very Strong
Aa1
Excellent
AA+
Very Strong
3. A
Excellent
AA
Very Strong
Aa2
Excellent
AA
Very Strong
4. A-
Excellent
AA-
Very Strong
Aa3
Excellent
AA-
Very Strong
5. B++
Good
A+
Strong
A1
Good
A+
Strong
6. B+
Good
A
Strong
A2
Good
A
Strong
7. B
Fair
A-
Strong
A3
Good
A-
Strong
8. B-
Fair
BBB+
Good
Baa1
Adequate
BBB+
Good
9. C++
Marginal
BBB
Good
Baa2
Adequate
BBB
Good
10. C+
Marginal
BBB-
Good
Baa3
Adequate
BBB-
Good
11. C
Weak
BB+
Marginal
Ba1
Questionable
BB+
Moderately Weak
12. C-
Weak
BB
Marginal
Ba2
Questionable
BB
Moderately Weak
13. D
Poor
BB-
Marginal
Ba3
Questionable
BB-
Moderately Weak
14. E
Under Regulatory Supervision
B+
Weak
B1
Poor
B+
Weak
15. F
In Liquidation
B
Weak
B2
Poor
B
Weak
16.
B-
Weak
B3
Poor
B-
Weak
17.
CCC+
Very Weak
Caa1
Very Poor
CCC+
Very Weak
18.
CCC
Very Weak
Caa2
Very Poor
CCC
Very Weak
19.
CCC-
Very Weak
Caa3
Very Poor
CCC-
Very Weak
20.
CC
Extremely Weak
Ca
Extremely Poor
CC
Extremely Weak
21.

C
Lowest
C
Distressed

COMDEX ranking is a composite of all the ratings that a company has received from A.M. Best, Standard & Poor’s, Moody’s and Fitch.  It gives the company’s standing, on a scale of 1-100, in relation to all other companies that have been rated by the rating services.  A company needs to be rated by at least two rating services to receive a COMDEX.

Ratings reflect the opinions of the rating agencies and are not implied warranties of an insurance company’s ability to meet its financial obligations to policyholders.