Investment-grade debt rating refers to which of the following?
A) The issuer is less likely to meet debt payment opbligations.
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 has a lower risk of defaulting on its debt payment obligations. A higher rating means that the issuer is more likely to meet its payments and is therefore considered a lower-risk investment. Options A and B are incorrect because the investment-grade rating does not indicate the likelihood of dividend payments or debt payment default. Option D is incorrect because there is a right choice among the given options.

Investment-Grade Debt Rating Refers to Which of the Following