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(5 marks) The long-term corporate credit rating (S&P) of Tesla in March 2018 was in the "B" category. 4. Required: a) Based on the S&P ratings transition matrix and default table provided to you in the appendix, estimate the one-year ahead conditional probabilies of default for Tesla in March 2022 and March 2025, respectively (conditional on survival up to that time) to "CCC" to assess likelihood of default b) In March 2018, estimate the one-year ahead likelihood of being downgraded c) Briefly explain the advantages and disadvantages of relying on credit ratings (5 marks) The long-term corporate credit rating (S&P) of Tesla in March 2018 was in the "B" category. 4. Required: a) Based on the S&P ratings transition matrix and default table provided to you in the appendix, estimate the one-year ahead conditional probabilies of default for Tesla in March 2022 and March 2025, respectively (conditional on survival up to that time) to "CCC" to assess likelihood of default b) In March 2018, estimate the one-year ahead likelihood of being downgraded c) Briefly explain the advantages and disadvantages of relying on credit ratings