What Is the Role of Debt Rating Agencies and What

question 17

Essay

What is the role of debt rating agencies and what two benefits result from their rating a company?

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Definitions:

Federal Court Appeal

The process of requesting a higher court to review and change the outcome of a decision made by a lower federal court.

State Trial Court

The first level of court in a state’s judicial system where civil and criminal cases are initially tried and decided.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm or damage.

Arbitration Agreement

A contract in which parties agree to resolve disputes outside of court, typically by a neutral third party called an arbitrator.