A Bond Rating Company Ran into Trouble When It Began

question 107

Essay

A bond rating company ran into trouble when it began rating bonds of companies without their approval. Many of the companies who received these 'free' credit ratings were upset by this practice. Why would a company be unhappy about receiving a 'free' credit rating?

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Definitions:

Cell Phone

A portable telephone that uses wireless technology to make and receive calls and access digital services.

Groceries

Items of food and other household necessities that are purchased from a grocery store or supermarket.

Clothes

Items worn on the body to protect, cover, or adorn, often made from fabrics or textiles.

Apply

To formally request or seek something, such as a job, admission to an institution, or a grant.