Which of the following statements about credit analysts' models is True?
A) Credit analysts focus primarily on demographic statistics and management's long-term investment strategies.
B) Credit analysts have access to the same set of information that internal managers use.
C) Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due.
D) Credit analysts rarely use comprehensive annual financial reports.

Question

Quizplus · Accepted Answer

Credit analysts are primarily concerned with assessing the ability of a government or company to pay interest and principal on their debt when they become due. They use various financial ratios and other analytical tools to develop a model that predicts the chances of timely interest and principal payments. They also review demographic statistics and long-term investment strategies, but these are secondary considerations. Credit analysts usually do not have access to the same information as internal managers, but they use publicly available information and financial reports to make their assessments. They may use comprehensive annual financial reports as part of their analysis.

Which of the Following Statements About Credit Analysts' Models Is