State guarantee protection . Exec-utive Life's municipal guaranteed investment contracts were not protected by guaranty funds. So rating companies aren't perfect, but planners argue that they are the best resource that we have. Perhaps, but they shouldn't be our only resource. Second, large stock companies, with an inherent ability to increase equity, are typically favored over mutuals by raters.
Stock companies are in business to benefit their owner-stockholders.
Mutual companies are owned by their policyowners. A mutual's owner and policy-owner are the same. No conflict here. Finally, ask yourself what constitutes a top rating. Not according to the raters themselves.