Question
What does the AAA rating assigned by S&P mean?
Multiple choice question.
The firm is in a strong position to meet its debt obligations.
The firm is unlikely to pay interest on time.
The firm is likely to enjoy high stock valuations in the future.
The firm is in a weak position to meet its debt obligations.
Multiple choice question.
The firm is in a strong position to meet its debt obligations.
The firm is unlikely to pay interest on time.
The firm is likely to enjoy high stock valuations in the future.
The firm is in a weak position to meet its debt obligations.
Answers
GPT-4o mini
The correct answer is:
**The firm is in a strong position to meet its debt obligations.**
An AAA rating by Standard & Poor's (S&P) indicates that the entity has a very low credit risk and is very likely to meet its financial commitments.
**The firm is in a strong position to meet its debt obligations.**
An AAA rating by Standard & Poor's (S&P) indicates that the entity has a very low credit risk and is very likely to meet its financial commitments.