Credit Rating Agencies: Moody's India Rating News

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Questions and Answers

What do Credit Rating Agencies assess?

  • The creditworthiness of countries (correct)
  • The population density of countries
  • The political stability of countries
  • The GDP growth rate of countries

What can lead to a country's sovereign credit rating being downgraded?

  • Stable economic policies
  • Increase in green investments
  • Impact of climate change (correct)
  • Decrease in population growth rate

Why does the delay in green investment affect a country's borrowing cost?

  • It raises borrowing costs (correct)
  • It boosts GDP growth
  • It decreases the demand for loans
  • It increases currency value

Which global agency has recently rated India at the lowest rung of investment grade?

<p>Standard &amp; Poor's (S&amp;P) (A)</p> Signup and view all the answers

What criteria are considered for rating a government's creditworthiness?

<p>Political risk, taxation, currency value (A)</p> Signup and view all the answers

What is a major flaw of the 'issuer-pays' model in credit ratings?

<p>It leads to a conflict of interest (C)</p> Signup and view all the answers

Which factor demonstrates India's willingness to pay according to the text?

<p>Zero sovereign default history (D)</p> Signup and view all the answers

What is highlighted as a concerning aspect of sovereign credit ratings in the text?

<p>Bias and subjectivity (D)</p> Signup and view all the answers

How do credit ratings impact developing countries, according to the text?

<p>Adversely affect economies and FPI flows (D)</p> Signup and view all the answers

What is the role of SEBI in India concerning credit rating agencies?

<p>Regulating credit rating firms (C)</p> Signup and view all the answers

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