Word: issuersã
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...model, in which the corporation issuing a security pays for Moody’s to rate that security. This creates a conflict of interest. Since rating agencies want to keep a steady flow of business, they have good reason to overrate securities and make their customers—the issuers??€”happy. Indeed, rating agencies in the past have given collaborative feedback to issuers to such an extent, some argue, that their ratings were no longer objective...
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