- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 29. Credit Analysis Models
- Subject 2. Credit Scores and Credit Ratings
CFA Practice Question
According to the one-year corporate transition matrix (exhibit 7 of the reading), the higher the credit rating, the more likely the issuer is to keep that credit rating. True or false?
Correct Answer: True
For example, from AAA to AA and A, the percentages are 90%, 88% and 87.5%, respectively.
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