In assessing the credit risk of a corporate issuer, the rating agencies never look at the ability of an issuer to make the contractual payments to debt holders.

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This statement is false. The rating agencies do look at the ability of an issuer to make the contractual payments to debt holders when assessing credit risk. This is a key factor in determining the issuer's creditworthiness and likelihood of defaulting on their debt obligations. Other factors that are considered include the issuer's financial strength, business profile, industry and market conditions, and management quality, among others.

In Assessing the Credit Risk of a Corporate Issuer, the Rating