While rating agencies strive for geographic consistency, historical data shows divergence in default rates between U.S., European, and emerging market firms.

Rating agencies produce through-the-cycle ratings, which reflect the long-term creditworthiness of firms, and are consistent with rating agencies' goal of ratings stability.

Outlooks indicate the most likely direction of a rating over the medium term, while placing a rating on a watchlist indicates a relatively short-term change is anticipated (usually within three months).