One of the practice questions mentioned about a firm undertaking an in house model for credit rating which would generate ordinal ranking and be updated more frequently, which is support yo be better than takng third party rating.
Why would the ordinal ranking part be an improvement? Shouldnt they be considering cardinal?
Credit ratings are ordinal… thats why they arent talking about cardinal… If they wanted cardinal, they would talk about other models.
From your post, it looks like the house model is better maybe because it gets updated more frequently.
Remember the rating shops don’t update for macro conditions and ratings tend to be stable over time - you can still build a better mousetrap without going cardinal