Which of the following does Moody's not consider in deriving the credit rating of a company?
A) Profitability ratios
B) Loan covenants
C) Solvency ratios
D) Collateral
E) None of the above

Question

Quizplus · Accepted Answer

Moody's, like other credit rating agencies, considers a wide range of financial metrics and factors when deriving the credit rating of a company. This includes profitability ratios, loan covenants, solvency ratios, and the quality and value of collateral, among other considerations. Therefore, none of the options listed are excluded by Moody's in their credit rating process.

Which of the Following Does Moody's Not Consider in Deriving