Three major rating agencies (Fitch, Moody's, and Standard and Poor's) for governments have each developed quantitative tools for assessing credit risk. Which of the following general factors is used by all three rating agencies in assessing credit risk?
A) Economy.
B) Budgetary flexibility.
C) Revenue dispersion.
D) Geographic location.

Question

Quizplus · Accepted Answer

All three major rating agencies (Fitch, Moody's, and Standard and Poor's) consider the economy as a fundamental factor in assessing credit risk, as it directly impacts a government's ability to generate revenue and manage debt.

Three Major Rating Agencies (Fitch, Moody's, and Standard and Poor's)