Which of the following statements about credit analysts' models is true?
A)Credit analysts focus on debt and finances,and not demographics and management 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 evaluating an entity's ability to repay its debt obligations on time. This involves analyzing various financial factors such as cash flow, debt levels, and financial ratios. For government entities, this means assessing their ability to pay interest and principal on bonds and other debt instruments. Demographic and management strategies are not typically a focus of credit analysis. Credit analysts may have access to some of the same information as internal managers, but their analysis focuses specifically on creditworthiness. Comprehensive Annual Financial Reports (CAFRs) may provide useful information for credit analysis, but analysts may also use other sources of financial data depending on the entity being assessed.

Which of the Following Statements About Credit Analysts' Models Is