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1 FINANCE MCQS

The type of rating that credit rating agencies do not usually consider is called ____________?

  • Split rating
  • Sinking rating
  • Automated rating
  • Floating rating
Correct Answer: B. Sinking rating

Detailed Explanation

Credit rating agencies typically focus on ratings that evaluate the creditworthiness of an issuer or security, such as split ratings or floating ratings. Sinking rating is not a recognized category in credit rating practices, as it does not relate to assessing repayment ability or default risk.

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