NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Investing in Fixed Income Securities (NISM XXI-A)
Which credit rating category would indicate the lowest credit risk for a corporate debt instrument in India?
AAA indicates the lowest credit risk. It is the highest safety rating assigned by Indian credit rating agencies, and AA, A and BBB represent progressively weaker capacity to meet debt obligations, thus higher default risk.
- AAA
- BAAACorrect
- CA
- DBBB
Explanation
Rating agencies in India use AAA for the highest safety, indicating the lowest credit risk. AA, A and BBB represent progressively higher credit risk.
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