Answer:
The correct answer is letter "A": give favorable ratings.
Explanation:
Credit-rating agencies are in charge of providing information to investors about firms' bonds and debt payments. Credit-rating agencies provide a score to recently-issued securities in exchange for a fee. Even if it is convenient for the agencies to rate the new assets high so firms are encouraged to select those firm services, they are well-regulated by the Credit Rating Agency Reform Act of 2006.
Three are the main credit-rating agencies in the U.S.: Moody's, Standard & Poor's and Fitch.
