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4. One of the bond rating agencies ran into controversy when it began rating bonds of...

4. One of the bond rating agencies ran into controversy when it began rating bonds of some companies without their approval. Many of the companies whose bonds were rated in this manner were upset by this. Why do you think a company would be unhappy to receive a "free" bond rating

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Free ratings are those ratings which have been provided by the bond rating agencies without appropriate consultation from the management of the company and these Bond ratings are always provided by the agencies without consultation of the projected growth rate and future prediction of the management of the organisation

Free Bond ratings have always been leading to controversy because the bond companies are always objecting as it is issued without their approval and not consulting the future projection of the management of the company so these companies whose bonds are rated in this manner will be upset by this and they would be trying to object the bond rating company as this bonds, according to their claim, will not be reflecting the true status of the repayment capability of the company and the investment grading of the bonds.

Company will be unhappy to receive a free Bond credit rating because this free credit rating will not be issued after consultation of the management of the company and it will not be subject to any kind of manipulation as it had been issued independently had it also have a high degree of failure because all the public information have been discounted to derived at the credit rating.

jeff jeffy answered 2 years ago
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