Best's Rating Center - Guide to Best's Issuer Credit Ratings

Guide to Best's Issuer Credit Ratings
Effective October 02, 2007

A Best's Issuer Credit Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation, of a company's balance sheet strength, operating performance and business profile.

Our rating process incorporates specific methodologies designed to address Issuer Credit Ratings and the credit marketplace. Read 'A.M. Best's Ratings and the Treatment of Debt', which outlines the relationship between Best's Financial Strength Ratings, Issuer Credit Ratings and Debt Ratings.

View our FAQ or read Bests Rating Scale and Related Definitions for complete details on Issuer Credit and Debt ratings.

Other Rating Guides are available for Debt, Financial Strength and Bank Deposit.

A complete list of Best's Rating Methodologies covering topics such as Insurance Groups BCAR (Best's Capital Adequacy Ratio), Financial Strength, Debt Ratings, and more are continually fine-tuned to reflect ever-changing industry, regulatory and legal developments. Please note that Best's Ratings are not a warranty of a company's financial strength and ability to meet its financial obligations. View our entire notice for complete details.

Issuer Credit Ratings

A Best's Long-Term Issuer Credit Rating is an opinion as to the ability of the rated entity to meet its senior obligations. These ratings are assigned to insurance companies, banks, hospitals, holding companies, or other legal entities authorized to issue financial obligations.

Ratings from "aa" to "ccc" may be enhanced with a "+" (plus) or "-" (minus) to indicate whether credit quality is near the top or bottom of a category. A company's Long-Term Issuer Credit Rating also may be assigned an Under Review modifier ("u") that generally is event-driven (positive, negative or developing) and indicates that the company's Best's Rating opinion is under review and may be subject to near-term change.

A.M. Best's Long-Term Issuer Credit Rating scale is used when assigning a Best's Issuer Credit Rating (ICR). The list below outlines the specific ratings in this area along with the associated descriptions.

Non-Insurance Company
Issuer Credit Ratings

Insurance Company
Issuer Credit Ratings

Investment Grade

Non-Investment Grade

Investment Grade

Non-Investment Grade

aaa (Exceptional)

bb (Speculative)

aaa (Exceptional)

bb (Fair)

aa (Very Strong)

b (Very Speculative)

aa (Superior)

b (Marginal)

a (Strong)

ccc, cc, c (Extremely Speculative)

a (Excellent)

ccc, cc (Weak)

bbb (Adequate)

d (In Default)

bbb (Good)

c (Poor)

d (In Default)

A Best's Short-Term Issuer Credit Rating is an opinion as to the ability of the rated entity to meet its senior financial commitments on obligations maturing in generally less than one year. The list below outlines the specific ratings in this area along with the associated descriptions.

Short-Term Issuer Credit Ratings

Investment Grade

Non-Investment Grade

AMB-1+ (Strongest)

AMB-4 (Speculative)

AMB-1 (Outstanding)

d (In Default)

AMB-2 (Satisfactory)

AMB-3 (Adequate)

Rating Outlook

Best's Issuer Credit Ratings (aaa to c) are assigned a Rating Outlook that indicates the potential direction of a company's rating for an intermediate period, generally defined as the next 12 to 36 months. Rating Outlooks include Positive, Negative and Stable. View our online Guide to Best's Credit Ratings for complete definitions on Outlooks.

Usage of Best's Ratings

Best's Ratings are proprietary and may not be reproduced without permission from A.M. Best. View our Legal and Licensing information for details on the use of A.M. Best trademarks, logos and service marks.

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