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

Read on for 13 cleansers for acne-prone skin on Amazon with at least a four-star rating and at least 300 reviews. Tiffany Dodson, SELF, "13 Acne Cleansers on Amazon That People Really Love," 14 Nov. 2018 Barbara Comstock, who says Roe v. Wade should be overturned and has an A rating from the NRA (which also gives her a lot of money). Jill Filipovic, Harper's BAZAAR, "Your State-by-State Guide to Women Running in the Midterms," 31 Oct. 2018 One Allure editor gave it an all-star rating, noting that this stuff helped remedy every single one of their complexion concerns. Tanisha Pina, Allure, "The Best Beauty Deals From the Macy's Fall VIP Sale," 21 Sep. 2018 In general, speakers with a lower rating like 4 ohms will need a more powerful receiver to drive them, while 8-ohm speakers, which are the most common, will work with most receivers. Don Melanson, Popular Mechanics, "The Setup: Building a Great Home Entertainment System," 18 July 2018 Gus Van Sant's critically lauded biopic about the life of cartoonist and quadriplegic John Callahan has an 80% fresh rating on Rotten Tomatoes. Erin Nyren, chicagotribune.com, "'Hotel Transylvania 3' sailing to $40 million-plus debut, 'Skyscraper' to disappoint," 14 July 2018 That has to be deserving of a better rating than 87. Andrew Joseph, For The Win, "Leonard Fournette wants to be taken off 'Madden' after botched speed rating," 12 July 2018 The days of a double-digit household rating seem out of reach. Chad Finn, BostonGlobe.com, "The Sports Hub remains top-rated radio station in Boston," 12 July 2018 Note: This is a full Taste Test review, with a star rating based on multiple visits. Mike Sutter, San Antonio Express-News, "Review: India Oven brings the heat on West Avenue," 12 July 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.

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First Known Use of rating

1702, in the meaning defined at sense 1

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Last Updated

26 Nov 2018

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The first known use of rating was in 1702

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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

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More from Merriam-Webster on rating

Rhyming Dictionary: Words that rhyme with rating

Spanish Central: Translation of rating

Nglish: Translation of rating for Spanish Speakers

Britannica English: Translation of rating for Arabic Speakers

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