BA2/BB

This is the next rating down from the highest non-investment grade rating, regarded as speculative. This rating is assigned to less creditworthy carriers and securities by the ratings agencies. Investors and policyholders of these entities face a higher risk of default.

The ratings assigned by the various ratings agencies are based primarily upon the insurer's or issuer's creditworthiness. This rating can therefore be interpreted as a direct measure of the probability of default. However, credit stability and priority of payment are also factored into the rating.