Understanding Business, 10th Edition

Published by McGraw-Hill Education
ISBN 10: 007352459X
ISBN 13: 978-0-07352-459-7

Chapter 19 - Using Securities Markets for Financing & Investing Opportunities - Critical Thinking - Page 549: 2

Answer

The various information that credit rating agencies provide to investors are : The ability of corporations to pay back past debt. Let to know whether the corporation has missed any timely installment or not. The corporation's preparedness to meet challenges.

Work Step by Step

So the Standard and poor's and moody's investor's services, as both are credit rating agency . A credit rating agency assesses the creditworthiness of any corporation. The credit rating agencies rate any corporation's creditworthiness on the basis of different parameters such as the ability of the corporation to pay back the past debt, whether the corporation has missed any timely installment. So before making any investment it is very important to know how much risky the investment in what are the chances of getting any chances of getting a return on investment, at what time, and how much. The various information that credit rating agencies provide to investors are : The nature of the industry the particular company is doing its business. The financial health of the company. The corporations preparedness to meet any challenges. The ability of corporations to pay back past debt. Let to know whether the corporation has missed any timely installment or not. The corporation's preparedness to meet challenges.
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