rating

noun
rat·ing | \ˈrā-tiŋ \

Definition of rating 

1 : a classification according to grade specifically : a military or naval specialist classification

2 chiefly British : a naval enlisted man

3a : relative estimate or evaluation : standing the school has a good academic rating

b : an estimate of an individual's or business's credit and responsibility

c : an estimate of the percentage of the public listening to or viewing a particular radio or television program

4 : a stated operating limit of a machine expressible in power units (such as kilowatts of a direct-current generator) or in characteristics (such as voltage)

Examples of rating in a Sentence

The school has an above-average academic rating. The article compares the fuel-economy ratings of various cars.

Recent Examples on the Web

Competition will be offered for eight one-design classes — J/22, Cal 25, Alerion 28, Harbor 20, J/70, J/80, J/105, and J/30 — while handicap divisions will sail under the ORC rating rule. baltimoresun.com, "Recreation and outdoors calendar (July 15)," 14 July 2018 The system has a total of 139 hp with fuel economy ratings of 48 mpg city, 44 highway and 46 mpg combined on 87 octane. Mark Maynard, sandiegouniontribune.com, "2018 Kia Niro PHEV: The future of plug-and-play," 13 July 2018 In April 1993 — less than a year after Moody's cut Detroit's debt rating to junk status — Joe Mifsud made a bet on the neighborhood where he was born. Allie Gross, Detroit Free Press, "1993 Corktown purchase sits on the edge of a jackpot," 13 July 2018 Spoiler: not a hell of a lot of dogs get ratings below 10/10. Brendan Leonard, Outside Online, "10 Animal Twitter Accounts That Will Improve Your Life," 12 July 2018 Yes, the state’s low-key governor entered the race for reelection with high approval ratings, running against competition that did not seem particularly daunting on paper. Adrian Walker, BostonGlobe.com, "The Democrats running for governor must be wondering when the cavalry arrives," 11 July 2018 Readers have flooded the website Goodreads with more than 7,000 positive ratings, and the book, which was published in June, is already in its fourth printing. Alexandra Alter, New York Times, "The Changing Face of Romance Novels," 7 July 2018 Defensive end Cameron Wake and Reshad Jones led the way with overall ratings of 88. Jordan Mcpherson, miamiherald, "Which Miami Dolphins players have the highest Madden 19 ratings?," 19 June 2018 With 50 ratings in all, The Griffin, Naval Square and 1919 Market topped the local list (in that order). Shannon Rooney, Philly.com, "Philly's top apartments: Where does your building rank?," 15 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'rating.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of rating

1702, in the meaning defined at sense 1

Keep scrolling for more

Learn More about rating

Phrases Related to rating

approval rating

credit rating

the ratings

Statistics for rating

Last Updated

15 Oct 2018

Look-up Popularity

Time Traveler for rating

The first known use of rating was in 1702

See more words from the same year

Keep scrolling for more

More Definitions for rating

rating

noun

Financial Definition of rating

What It Is

In personal finance, the term rating commonly refers to a credit rating score issued by the Fair Isaac Corporation (a "FICO score"). A person's credit rating indicates how creditworthy he or she is.

In corporate finance, rating usually refers to a "grade" assigned to a bond, bond issuer, insurance company or other entity or security to indicate its riskiness. Securities analysts often issue ratings on stocks; these ratings are usually "Buy," "Sell" or "Hold."

How It Works

Bond rating agencies like Moody's and Standard & Poor's (S&P) provide a service to investors by grading fixed income securities based on current research. The rating system indicates the likelihood that the issuer will default either on interest or capital payments.

For S&P,  the ratings vary from AAA (the most secure) to C.
For Moody's, the ratings go from Aaa to D, which means the issuer is already in default.

Only bonds with a rating of BBB or better are considered "investment grade." BBB bonds are considered to be suitable for investment by institutions. Anything below the triple-B rating is considered to be junk, or below investment grade. Bond ratings are periodically revised based on recent data.

Treasury bonds are not rated because they are backed by the "full faith and credit" of the United States government. They are considered to be the safest of investments because the government has the power to levy taxes in order to pay its debts.

Why It Matters

Ratings have huge influence on the price and demand for certain securities, particularly bonds: The lower the rating, the riskier the investment and the less the investment is worth. Low ratings often lead to less trading activity and thus liquidity problems. This is why downgrades (or rumors of downgrades) in an issuer's credit rating can have a significant impact on its securities and on the market or industry.

Bonds are not the only securities affected by credit ratings, however. Preferred stock prices can move sharply when the issuer's credit rating changes (as this is an indicator of the issuer's ability to meet preferred dividend obligations). Securities that are convertible into a company's debt are also affected by credit ratings, especially if the convertible security is trading near or above the point at which the holder may convert the security to debt.

Low ratings are not always bad. They simply mean there is more risk associated with an investment and thus more potential for higher returns. In fact, many income investors actively enhance their returns by dividing securities into sectors based on certain characteristics such as credit rating, yield, coupon, maturity, etc., and then finding those sectors that will perform most favorably for the investor under certain market conditions.

Grouping securities by rating is common because investors are trying to rank investments, buy those positioned to improve and sell those expected to decline. An issuer doesn't need to actually default or lose money for an investor to lose money, however -- remember that the simple threat of default or decline can lower the price of the security. This threat could be sensitivity to adverse business conditions, rumors of a ratings downgrade or inaccuracy of ratings agency opinions.

Source: Investing Answers

rating

noun

English Language Learners Definition of rating

: a measurement of how good, difficult, efficient, etc., something or someone is

the ratings : numbers that show how many people watch or listen to a particular television or radio program

: a symbol that is officially given to a movie, video game, etc., to tell people what audience it is appropriate for

rating

noun
rat·ing | \ˈrā-tiŋ\

Kids Definition of rating

: a position within a grading system credit rating

Keep scrolling for more

Comments on rating

What made you want to look up rating? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

a state of commotion or excitement

Get Word of the Day daily email!

Test Your Vocabulary

Words from Greek and Roman Mythology Quiz

  • the-triumph-of-venus-by-alessandro-magnasco
  • Boreal comes from the name of the ancient Greek god of which wind?
Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!