My father taught me that humans innately trust others because without it much of day-to-day life would not function. Societies build on such trust by creating contract enforcement mechanisms that incentivise fair play.
In the borrowing and lending space, credit agencies build on that trust by providing independent credit ratings to the borrowing programme of corporates. However, due to their shortcomings, the “trust” on the efficacy of such ratings has been low. Ant currently, it is at an all-time low due to hyper-risk aversion.
Consider the AAA (read as triple-A) rating which is explained as “Instruments with this rating are
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