Credit Rating performs the function of credit risk evaluation reflecting the borrower’s expected capability to repay the debt as per terms of issue.

Related MCQs

• Which sentence is true? Sentence A – Rating once given remains unchanged Sentence B – Rating may be upgraded, downgraded or continue to be unchanged.
• Which instrument was introduced in year 1990 with a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowings?
• Credit Rating is beneficial to :
• First Credit Rating Agency of India is ____________.
• The concept of Credit Rating was originated in which country?
• Which of the following is NOT true with respect to Credit Rating
• Which one of the following is the Regulator of the Credit Rating Agencies in India?
• The current spot rate for the Euro is Rs. 86,the expected inflation rate is 5 in India and 3 in Europe. What is the expected Spot Rate of Euro one year hence?
• Which of the following are sources of funds? 1.Issue of Bonus Shares 2.Issue of Shares against the purchase of Fixed Assets 3. Conversion of Debentures into Shares 4.Conversion of Loans into Shares
• Sentence A – Through Rights issue fresh capital can be raised and Sentence B – Through a Bonus Issue Fresh capital can be raised.