What does the market want from ratings
A rating has always been an independent opinion about credit risk and the market expects ratings to perform effectively as a benchmark of credit risk. This means that ratings should be relatively stable, especially at higher levels. While most investors accept that ratings can and will change over a cycle, they don't expect sudden and dramatic changes. Second, people expect ratings to be broadly comparable across asset class, geography and time. Finally, ratings should be transparent, which means that the market should be able to understand the criteria and reason for a rating, and what might cause a rating to change.
How close are we to seeing...
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