The type of rating which all the credit rating agencies do not consider is classified as __________?
Correct answer: A. split rating
- A. split rating
- B. sinking rating
- C. automated rating
- D. floating rating
Explanation
A split rating occurs when different credit-rating agencies assign different ratings to the same debt issue, so the agencies do not reach a common assessment. Sinking, automated, and floating rating are not standard classifications of agency disagreement.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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