BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In the context with Investment what are A, AA+ and AAA?
A
Stock exchange Index
B
Credit ratings
C
Market stability Index
D
Profit equity Index
Explanation: 

Detailed explanation-1: -Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. characteristics.

Detailed explanation-2: -AAA ratings are issued to investment-grade debt that has a high level of creditworthiness with the strongest capacity to repay investors. The AA+ rating is issued by S&P and is similar to the Aa1 rating issued by Moody’s. It comes with very low credit risk and indicates the issuer has a strong capacity to repay.

Detailed explanation-3: -AAA-Extremely strong capacity to meet its financial commitments. AAA is the highest issuer credit rating by Standard & Poor’s. AA-Very strong capacity to meet its financial commitments.

Detailed explanation-4: -Fitch’s credit rating scale for issuers and issues is expressed using the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade) with an additional +/-for AA through CCC levels indicating relative differences of probability of default or recovery for issues.

Detailed explanation-5: -authentication, authorization, and accounting (AAA)

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