ratings — Corporate Credit Analysis Practice Questions

48 free Corporate Credit Analysis questions on ratings: 10 easy, 33 medium, and 5 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn ratings from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

Drill ratings free with full explanations →

1. According to standard rating agency thresholds for a diversified industrial, which of the following ratings ma
2. Based on standard notching rules, what is the likely rating of this specific bond?
3. Falcon Aviation has been assigned a credit rating of BBB-. Based on standard market conventions, how is this c
4. According to standard notching conventions, what is the rating of the TLB?
5. What is the most likely rating cap for Titan's US-dollar denominated bonds?
6. If the agency identifies that a sovereign default in its home country would trigger a 'Transfer and Convertibi
7. NorthStar Industries has a B-rated Issuer Credit Rating (ICR… — What is the likely rating of these specific no
8. Which statement best describes the expected shape of their cumulative PD curves over a 10-year horizon?
9. If the analyst assumes a 2% annual probability of default and a 60% loss given default, what portion of the sp
10. A credit analyst observes a 'positive basis' on a corporate… — What does this 'basis' of +50 bp most likely si
11. According to standard rating agency notching conventions, what is the most likely rating for this specific bon
12. If the credit spread widens by 25 basis points, what is the estimated mark-to-market impact on the position?
13. In the context of the credit cycle, why does the 'Expansion' phase typically lead to higher credit risk in the
14. During a credit cycle peak, which of the following combinations of indicators would an analyst most likely obs
15. If the historical BB five-year PD is 9%, what is the most likely explanation for this discrepancy according to
16. According to standard notching conventions, what is the likely issue rating for these notes?
17. What does the remaining 290 bp of the spread primarily represent in the context of credit pricing?
18. If the issuer carries $1,200 million in debt, how would a through-the-cycle rating approach evaluate its lever
19. What is the CDS-bond basis, and what does a positive basis typically signal to a credit analyst?
20. If the credit spread increases by 40 bps for every 0.5x turn increase in leverage, what is the new implied cre
21. If the Issuer Credit Rating (ICR) is B, what is the likely notched issue rating for this TLB according to stan
22. If the loan is issued at an Original Issue Discount (OID) of 97.0 and SOFR is 3.50%, what is the approximated
23. A 5-year CDS on a BB-rated issuer trades at 450 bps. Assuming a standard recovery rate of 40%, what is the mar
24. According to the standard rating agency notching matrix for speculative-grade issuers, what would be the likel
25. A 'Fallen Angel' trade is based on the observation that bond… — What is the main driver of this over-correctio
26. However, if that issuer's capital structure becomes 'top-heavy' with a large amount of senior secured debt, wh
27. If an issuer is rated CCC, why might a senior secured bond with 100% recovery be capped at a rating of B or B-
28. In the S&P rating scale, what does the 'D' rating signify?
29. What does a 'Developing Outlook' (or 'Watch Developing') typically signify?
30. What is the 'Issuer-Level PD Floor' in the context of notching?