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Credit Rating Agencies: Moody's India Rating News
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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)</p> Signup and view all the answers

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

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

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

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

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

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

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