Q229
Securities with lower default risk and having highest credit quality are assigned rating of
A.
double B
B.
triple B
C.
triple A
AnswerD.
double A
Answer: Option C
Solution
Answer: Option C
Solution:
Securities with lower default risk and having highest credit quality are assigned rating of triple A. AAA is the highest possible rating that may be assigned to an issuer's bonds by any of the major credit rating agencies. AAA-rated bonds boast a high degree of creditworthiness, because their issuers are generally easily able meet their financial commitments and they consequently run lower risks of defaulting.