Is credit rating nominal ordinal interval or ratio?

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1212961

2026-07-19 17:05

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Credit ratings are considered ordinal data. This classification arises because credit ratings indicate a ranked order of creditworthiness (e.g., AAA, AA, A, etc.), but the differences between the ratings are not uniform or measurable in a quantitative sense. For example, the difference in credit risk between an AA and A rating is not necessarily the same as between an A and a BBB rating.

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