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Rating outlook

An agency's indication of the likely direction of the next review: positive, stable or negative.

How to read the number

The outlook changes before the rating does, which is what makes it an early signal; a change of outlook is not itself a rating action.

When the metric lies

A negative outlook need not end in a downgrade, and the reverse holds too. Reading it as a decision already taken mistakes a probability for a fact.

Also known as: outlook on a rating

Related terms