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    Question

    Which of the following best reflects the purpose of

    credit ratings provided by agencies like CRISIL or ICRA?
    A Measure a bank’s profitability Correct Answer Incorrect Answer
    B Certify the financial statements Correct Answer Incorrect Answer
    C Indicate the issuer’s creditworthiness Correct Answer Incorrect Answer
    D Suggest investment strategies Correct Answer Incorrect Answer
    E Calculate yield-to-maturity Correct Answer Incorrect Answer

    Solution

    Credit ratings are independent assessments that reflect the ability of an issuer to meet its debt obligations. They guide investors but are not a guarantee.

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