* 1-Y Probability of default (denoted PD) is defined for a single issuer. * Rating (like AA) is defined for one bond among many by the same issuer.
Jon Frye confirmed that an AA rating is not an expression of the firm’s status/viability/strength/health.
I guess the rating does convey something about the LossGivenDefault, another attributes of the bond not the issuer.
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