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What are the differences between the various ratings categories for Moody’s and S & P
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- Discuss the advantages and disadvantages of the three major credit rating methods designed by Fitch, Moody's and Standard & Poor's.What is Moody's credit rating methods? and what is the benefits and drawback of it?What are the segment reporting rules under the FASB, and how do they differ from the IFRS? How are they similar? Which set of rules provides more useful information to investors, and why?
- What is the relevance and importance of industry ratings?What are the three major rating companies and differentiate the three on how to rate?Ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs) are unrelated to the yield of the instrument. are issued for all debt securities except for any government issued securities. are based on the issue's default risk. are influenced by the issue's liquidity risk.
- The process of fixing the price of securities in the financial market is based on which of the following: a. Price is fixed by the seller of the Financial Instrument b. Price is fixed by the issuer of the Instruments c. Government fixes the price d. Demand and supply of the market helps to fix the pricThe process of fixing the price of securities in the financial market is based on which of the following: a. Demand and supply of the market helps to fix the price b. Government fixes the price c. Price is fixed by the seller of the Financial Instrument d. Price is fixed by the issuer of the InstrumentsWhat is the difference between trading securities and available for sale securities, and how are differences between their costs and market values reported in the financial statements?
- Who rates bonds, andwhat are some of the factors the rating agenciesconsider?Name the major rating agencies, and list some factors that affect bond ratings.Identify and critically appraise how the rating agency makes connections between the overall debt level of your country, external debt, inflation, institutional resistance and other macroeconomic factors, and the overall rating.