Which of the following is (are) TRUE concerning the features of a good rating system I. The ratings are comparable among market segments, portfolios and customer types. II. The rating system measures the distance from a default event while ignoring other financial elements that are not directly tied to potential default. III. The rating system must provide correct expectations related to default probabilities which are back tested on a continuous basis. IV. The rating system considers all possible perspectives of a firms performance such as profitability, grow rate, employ benefit, etc.

A. I only

B. II only

C. I, II and III only

D. I, II, III and IV