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Are Credit Ratings an Assurance of Credit Quality?

Updated: 9/20/2023
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Anandvijayakumar

Lvl 1
12y ago

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No. Credit Ratings should not be viewed as an assurance of credit quality or the exact likelihood of default. Instead, ratings denote a relative level of credit risk that reflects a rating agency's carefully considered and analytically informed opinion as to the creditworthiness of an issuer or the credit quality of a particular debt issue.

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12y ago
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