Investment-grade debt rating refers to which of the following?
A)The issuer is less likely to meet debt payment obligations.
B)The issuer is more likely to increase dividend payments.
C)The issuer is likely to meet debt payment obligations.
D)None of the above.

Question

Quizplus · Accepted Answer

Investment-grade debt rating indicates that the issuer is likely to meet debt payment obligations. It implies a low credit risk for the investors. Option A is incorrect because investment-grade rating indicates low credit risk and that the issuer is likely to meet its debt obligations. Option B is incorrect because increased dividend payments do not necessarily impact the issuer's creditworthiness or ability to meet its debt obligations.

Investment-Grade Debt Rating Refers to Which of the Following