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      Question

      Which of the following is not true with regard to

      credit rating agency?
      A Credit rating is an opinion formed by credit evaluation of a borrower’s potential to repay debt. Correct Answer Incorrect Answer
      B The rating agencies follow a thorough and transparent evaluation so as to lend credibility to their findings Correct Answer Incorrect Answer
      C Credit rating will guide the investor in selection of debt instrument. Correct Answer Incorrect Answer
      D High credit rating gives assurance to the investors about the safety of the instrument and minimum risk of bankruptcy. Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      All are true with regard to credit rating agencies.

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