NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has released a new research report entitled “Rating in a vacuum or Rating in a Real World.” This report makes the following key points:
- A recent review of the telecommunications sector by Standard and Poor’s, and a subsequent minor change to its upgrade-downgrade thresholds, led Verizon to issue a regulatory disclosure stating that it no longer would be able to achieve an upgrade to its pre-Vodafone credit rating.
- Strictly adhering to quantitative measures strikes us as overly prescriptive and rigid, and ignores the value and potential growth prospects of an ever-changing business such as telecommunications.
- KBRA’s approach is to take a more holistic view of a corporation’s rating, focusing on the business risk, mercurial as it may be. We then factor in financial risk—both historically, for perspective, and prospectively, as our ratings are forward looking.
To view the report, click here.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).