Having achieved an understanding of a corporation's business risk and corporate governance risk, the rating agencies move on to assessing financial risk, which involves traditional ratio analysis and other factors affecting the firm's financing.

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This statement is true. After assessing a corporation's business risk and corporate governance risk, rating agencies do move on to assessing financial risk. This typically involves traditional ratio analysis and other factors that can impact a company's financing.

Having Achieved an Understanding of a Corporation's Business Risk and Corporate