The credit rating methodology used in publicly available financial tools may differ significantly in certain respects from the credit rating methodologies applied by independent credit rating agencies to determine official credit ratings and the impact of any such differences should be carefully considered. For instance, publicly available tools generally use only a limited sample of quantitative data to determine a credit rating. Official credit ratings published by independent credit rating agencies are derived as a result of far more rigorous analysis that includes quantitative analysis of historic and forecast entity performance as well as detailed qualitative analysis of, for instance, management’s ability to manage the entity, industry specific features and the entity’s market share in its industry.
TPG2020 Chapter X paragraph 10.73
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By OECD
Category: OECD Transfer Pricing Guidelines (2017) | Tag: Financial transactions, Intra-group loan, Loan, Treasury functions, Use of credit ratings
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