👉 Rating engineering is a sophisticated practice used in finance and data science to manipulate or influence the perceived value, risk profile, or performance metrics of financial instruments, products, or services. It involves crafting and adjusting various attributes—such as pricing, risk parameters, or performance benchmarks—to achieve desired outcomes, often to meet specific business goals or investor expectations. This can include techniques like altering the yield curve, adjusting volatility estimates, or manipulating credit ratings. While it can be used to optimize financial strategies and enhance market efficiency, rating engineering also raises ethical concerns, particularly when it involves misrepresentation or misleading information to stakeholders.
