Brief on various timelines for the rating process and default recognition

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Rating process timelines vary based on complexity, while default recognition typically occurs after a missed payment.

Rating process timelines can range from a few weeks to several months, depending on the complexity of the analysis and the issuer's responsiveness.
Default recognition usually occurs after a missed payment or breach of contract, triggering a review by credit rating agencies.
Credit rating agencies may also consider other factors such as financial distress or bankruptcy filings when determining default.
For example, a simple credit rating for a stable company may be completed within a few weeks, while a complex structured finance deal may take several months.
Default recognition may be immediate for certain types of debt instruments, such as bonds with acceleration clauses.
Timely communication and transparency from issuers can expedite the rating process and help prevent default surprises.

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