What Does Credit Rating Convey?

1.	What Does Credit Rating Convey?
Answer» Credit rating is an assessment of the probability of default on payment of interest and principal on a debt instrument. It is not a recommendation to BUY, sell or hold a debt instrument. Rating only provides an ADDITIONAL input to the investor and the investor is required to MAKE his own independent and objective analysis before arriving at an INVESTMENT decision. Credit rating is an assessment of the probability of default on payment of interest and principal on a debt instrument. It is not a recommendation to buy, sell or hold a debt instrument. Rating only provides an additional input to the investor and the investor is required to make his own independent and objective analysis before arriving at an investment decision.

Answer»

Credit rating is an assessment of the probability of default on payment of interest and principal on a debt instrument. It is not a recommendation to BUY, sell or hold a debt instrument. Rating only provides an ADDITIONAL input to the investor and the investor is required to MAKE his own independent and objective analysis before arriving at an INVESTMENT decision.

Credit rating is an assessment of the probability of default on payment of interest and principal on a debt instrument. It is not a recommendation to buy, sell or hold a debt instrument. Rating only provides an additional input to the investor and the investor is required to make his own independent and objective analysis before arriving at an investment decision.

Discussion

No Comment Found

Related InterviewSolutions

Why There Are Not Common Symbols For Credit Ratings Of All Agencies ?
What Are The Measures Taken By Sebi In Strengthening Credit Rating ?
How Can An Investor Know If A Credit Rating Agency Has Changed Its Rating ?
What Are The Common Factors That Are Taken Into Account While Awarding The Credit Rating ?
From Where Can The Credit Ratings Of Instruments Be Obtained ?
What Are 'provisional' Ratings?
Does The Size Of The Rated Debt Obligation Affect Its Credit Rating? What Are 'provisional' Ratings?
If A Credit Rating Is Downgraded, Does It Mean That A Default Is Imminent ?
Do Agencies Rating Small And Medium Enterprises, Mutual Funds, Banks, Non-banking Financial Institutions, Insurance Providers, Infrastructure Entities, Etc. Also Fall Under The Regulatory Purview Of Sebi?
Why Do Credit Ratings Change?