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Transition matrix and PD


New Member
In BT's pdf "Brian Nocco and René Stulz, “Enterprise RiskManagement: Theory and Practice” is example with transition matrix, and at page 4 there is statement "Given an optimal target rating of ‘A,’ the firm discerns this rating will be achieved if itsprobability of default is 0.08%."

Could you explain why PD is 0.08% ?
(From table 0.08% is just probability of migrating from A to Aaa, but not PD)