If a bond rating company does not change its ratings in response to temporary changes in the economy, but only on clear structural changes in a company's credit, the bond rating company is following:
A) credit watch
B) the hierarchy principle
C) a stable rating philosophy
D) a standard financial analysis
E) a conservative rating philosophy

Question

Quizplus · Accepted Answer

A stable rating philosophy involves maintaining consistent ratings despite temporary economic fluctuations, focusing instead on long-term structural changes in a company's creditworthiness.

If a Bond Rating Company Does Not Change Its Ratings