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A
External agency credit ratings tend to be through-the-cycle (TTC)
B
Through-the-cycle (TTC) is unconditional, while point-in-time (PIT) is conditional
C
Credit spreads are at-the-point (PIT) and PIT measures theoretically incorporate more information
D
During crisis periods, PIT approaches imply higher expected and unexpected loss (EL & UL) such that PIT tends to be pro-cyclical
