Which factor is NOT typically considered by surety companies during risk evaluation?

Surety companies conduct a thorough risk evaluation process when determining whether to underwrite a bond for a principal. One of the main components of this risk assessment is an evaluation of the principal's credit history, which provides insight into their financial responsibility and reliability. Additionally, the financial stability of the principal is a critical factor since it reflects their ability to fulfill obligations and manage financial risk effectively. Furthermore, the principal's experience in the relevant industry is taken into account because it indicates their capability and understanding of the trade or service being bonded, which is essential for reducing the likelihood of default.

In contrast, local market conditions, while they can impact a principal's business environment, do not directly measure the principal’s own creditworthiness, financial health, or industry experience. These broader economic factors may influence the overall risks in the market but are not typically part of the direct evaluation of the principal for bond underwriting. Therefore, it is the local market conditions that do not have a direct correlation to the risk assessment criteria used by surety companies when evaluating a bond application.