easy · FRM Part 1 Financial Markets and Products
How does the 'Issuer-Pays' model differ from the 'Subscriber-Pays' model in the rating industry?
- The 'Issuer-Pays' model is only used for government (sovereign) debt.
- In the 'Issuer-Pays' model, the entity seeking the rating pays the fee.
- The 'Subscriber-Pays' model is currently illegal in most jurisdictions.
- In the 'Subscriber-Pays' model, the government pays the fee to ensure stability.
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