rating

noun
rat·​ing | \ ˈrā-tiŋ How to pronounce rating (audio) \

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

But a rating system's real value is in its ability to predict the damage a storm will bring, and that test still lies ahead. David Grossman, Popular Mechanics, "AccuWeather Unveils Its Own Hurricane Scale," 14 Jan. 2019 Credit: Lyft The second update aims to sidestep the tyranny of the rating system. James Vincent, The Verge, "Lyft adds driver-friendly features including default tipping option," 15 Nov. 2018 With only the report function and no user rating system, buyers in the Facebook Marketplace have to trust the sellers, which is the perfect recipe for a scam. Kim Komando, Fox News, "3 new online marketplaces better than Craigslist," 22 July 2018 NYC Parks also has a tiered rating system that identifies how accessible a playground is; level one is a playground for all children, while a level four playground includes transfer platforms and ground-level play features, but no adaptive swings. Megan Barber, Curbed, "Why cities need accessible playgrounds," 20 July 2018 Now) CBD Hydrating Lip Balm Already boasting a five-star rating on Ulta's site, this lip balm promises to repair not only the top layer of skin on the lips but also the collagen under the surface. Marci Robin, Allure, "Ulta Welcomes Cannuka, Its First-Ever CBD Skin-Care Brand," 17 Mar. 2019 Season 3 of the series did experience a drop in overall ratings. Kayla Keegan, Good Housekeeping, "'This Is Us' Fans Are Getting Super Nervous That the Show May Not Be Renewed for Season 4," 5 Mar. 2019 State test scores haven’t actually been required in teacher ratings since the state Board of Regents imposed a temporary moratorium on their use in 2015, but teachers unions repeatedly have rallied, calling for them officially to be decoupled. Leslie Brody, WSJ, "New York Lawmakers Pass Bill to Drop Student Test Scores From Teacher Reviews," 23 Jan. 2019 First, nobody was watching it, at least not on traditional television where they could be counted in the Nielsen ratings. Todd Vanderwerff, Vox, "Why more TV shows should do year-end Christmas specials," 23 Dec. 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

16 Apr 2019

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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
: 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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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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