Question

Consider the following statements:
$1$. A credit rating is an assessment of the credit worthiness of a borrower.
$2$. Individuals, corporations and governments are assigned credit ratings - whosoever wants to borrow money.
$3$. Individuals are given 'credit ratings', while corporations and governments receive 'credit scores'.
Which of the given statements is/are correct?

• A. $1$ and $2$
• B. $1$ and $3$
• C. $1$ only
• D. All of the above

Answer 1

The correct option is A $1$ and $2$

A credit rating is an assessment of the creditworthiness of a borrower. Individuals, corporations and governments are assigned credit ratings — whosoever wants to borrow money. Individuals are given ‘credit scores’, while corporations and governments receive ‘credit ratings’. Some of the prominent examples of Credit Rating agencies are- Standard and Poor’s (S & P), Moody’s Investor Services, Fitch Ratings, Limited, Credit Analysis & Research Limited (CARE), CRISIL, Ltd, etc.