A Suspended Rating indicates that we feel the company's latest reported financials are not reliable or indicative of the risk/reward of the stock.
A Suspended Rating indicates that we feel the company's latest reported financials are not reliable or indicative of the risk/reward of the stock. For example, an announcement of a large acquisition or spin-off means the current financial results may change significantly in the future. Until the company provides updated financials, we have no way of reliably modeling the current business. We continue to make our models available based on the most recently available data, but we suspend our rating to let clients know that the model may be less reliable than normal models.
We also suspend our rating when certain events cause a stock to be driven by news instead of fundamentals. We do not remove these stocks from coverage so that clients can still see our assessment of the risk/reward of the stock before the event that caused us to suspend the rating. For more details on Suspended Ratings, click here.
Even when the Overall Rating is suspended, we provide the latest results of our model, which include Quality of Earnings and Valuation ratings. The Quality of Earnings ratings are most at risk of change during a Suspension. The Valuation Ratings are less likely to change and have more analytical value.