Which of the following statements is NOT correct?
A)The credit rating is the measure of default risk estimated by a credit rating agency.
B)Standard & Poor's is a credit rating agency.
C)The rating assigned at the time of the issue is valid up to the maturity date of the security.
D)The higher rating grade the security is assigned the lower is the assessed default risk.

Question

Quizplus · Accepted Answer

Credit ratings can change over time and are not fixed until the maturity date of the security. They are subject to review and can be upgraded or downgraded based on the issuer's financial condition and other factors.

Which of the Following Statements Is NOT Correct