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If The Issuer Pays For The Rating, How Does A Credit Rating Agency Maintain Its Independence? |
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Answer» ALTHOUGH the issuer pays for the RATING, the INVESTOR uses it. Like any other product or service, the 'value' of the rating depends entirely on the perceptions of the investor. Investor perceptions are based on the credibility of the past ratings assigned by each rating agency. (Please also refer to section - How CRISIL MANAGES CONFLICT). Although the issuer pays for the rating, the investor uses it. Like any other product or service, the 'value' of the rating depends entirely on the perceptions of the investor. Investor perceptions are based on the credibility of the past ratings assigned by each rating agency. (Please also refer to section - How CRISIL manages Conflict). |
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