Moody's Has Developed a Corporate Bond Default-Risk Rating System Using

question 49

Multiple Choice

Moody's has developed a corporate bond default-risk rating system using capital and lower case letters and numbers.Below are several examples of Moody's ratings.Which answer choice lists a collection of ratings for "high credit investment grade" bonds?

• A)Baa1,A1,A3
• B)Ba1,Baa2,Baa3
• C)Aa2,Aa3,A1
• D)Caa,Ca,C

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Definitions:

Enterprise

describes a large, complex business or organization that engages in commercial, industrial, or professional activities.

Minimizes Profit

A situation or strategy that unintentionally reduces the potential earnings or efficiency of a business operation.

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon.

Capacity

The maximum number of goods a company can produce or the amount of work it can perform in a given time period, under current conditions.