Which of the following statements about credit analysts' models is true?
A) Credit analysts focus primarily on demographic statistics and management's long-term investment strategies.
B) Credit analysts have access to the same set of information that internal managers use.
C) Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due.
D) Credit analysts rarely use comprehensive annual financial reports.

Question

Quizplus · Accepted Answer

Credit analysts are primarily concerned with assessing a government's ability to pay interest and principal on debt when due. They rely on a variety of sources, including financial statements, economic data, and qualitative information to construct their models. Demographic statistics and long-term investment strategies may be taken into account, but they are not the primary focus. Credit analysts also typically have access to a wide range of information, including comprehensive annual financial reports, in order to make their assessments.

Which of the Following Statements About Credit Analysts' Models Is