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Credit rating agencies
e) It seems a bond rating tells you even less about the price that investors are willing to pay.
c) Lately, the credit-rating agencies have struggled to keep up.
a) The credit rating agencies use legions of high trained analyst with access to top management.
d) In 1997 two-third of the debt rated triple B by standard and poor was priced within 20 basis points of the average bond with the same rating.
b) Their meticulous reports giving ratings for corporate bonds are designed to give an accurate picture of the bonds riskiness and ultimately the probability of default.