Moodys Investors Service, Standard & Poors Corporation, and Dun & Bradstreet are well-known services that use publicly
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Moody’s Investors Service, Standard & Poor’s Corporation, and Dun & Bradstreet are well-known services that use publicly available financial information to provide ratings on the outstanding debt securities of many U.S. companies. High ratings indicate less risky debt than low ratings. DuPont, for example has the highest AAA rating. Briefly explain why a company would desire a high debt rating and how such a desire may encourage management to manipulate the financial statements.
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