Methodology Used For Calculating Hits and Misses

The "Hits and Misses" aims to measure the extent to which the major rating firms converge toward our rating. For example, if we rate an issuer "BB" and another rater moves from "BBB" to "BBB-", such an action would be considered a "hit". If the rater withdraws a rating, then such action would be neither a "hit" nor "miss". Additionally, if we rate an issuer at a different level than the other raters and warn that they might take a divergent action and subsequently take a divergent action, then such is not counted as a "miss". If a rater takes an action during the course of a year whereby they (1) move away from us and then towards us or (2) towards us and then away from us, then such actions cancel each other out and therefore are not considered a "hit" or a "miss".