Moody's Investor Service has added the numbers 1,2,and 3 to some of their ratings.What type of risk are these ratings attempting to measure?
A)Credit risk
B)Interest rate risk
C)Business risk
D)Call risk
E)Prepayment risk

Question

Quizplus · Accepted Answer

Moody's rating system attempts to measure the credit risk associated with a particular investment. The use of numbers 1, 2, and 3 within their ratings is meant to further differentiate the level of credit risk associated with an investment, with 1 indicating the lowest credit risk and 3 indicating the highest credit risk. Therefore, Moody's rating system is focused on measuring credit risk.

Moody's Investor Service Has Added the Numbers 1,2,and 3 to Some