Because the government mandates the only a few companies can doing ratings, this creates limited competition and greater pricing ability for the few firms allowed to provided the service. … "Limited Competition" has a significant impact, so an analyst should put more weight into it. "Limited Competition" will have a long-term positive impact on the this entity, which adds to its value. "Limited Competition" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.