Since 1970, Wright Investors' Service has rated all of the companies in its database
(when there is sufficient information available). The Wright Quality Rating, measures
the overall investment quality of a company.
Wright Quality Ratings are based on numerous individual measures of quality, grouped
into four principal components: (1) Investment Acceptance (i.e. stock liquidity),
(2) Financial Strength, (3) Profitability & Stability, and (4) Growth. The ratings
are based on established principles using 5-6 years of corporate record and other
The ratings consist of three letters and a number. Each letter reflects a composite
qualitative measurement of numerous individual standards which may be summarized
A = Outstanding; B
= Excellent; C = Good;
D = Fair; L = Limited;
N = Not Rated.
The number component of the Quality Rating is also a composite measurement of the
annual corporate growth, based on earnings and modified by growth rates of equity,
dividends, and sales per common share. The Growth rating may vary from 0 (lowest)
to 20 (highest). (See sample Quality Rating below.)
The highest quality rating assigned by Wright is AAA20. This rating would be assigned
to a company that has a large and broad base of shareholders, an outstanding balance
sheet and strong and stable profitability. The company would also have experienced
superior growth over the past several years.
The Wright Quality Rating assigned to a company also takes into consideration country
and industry variations. If there is not sufficient information available, the quality
rating will not be assigned or an “N” (not-rated) will be applied for
that particular quality criteria.