Briefly discuss different types of investment grades of Long-00146
This subjective question is related to the book/course
vu bt301 Introduction to Biotechnology.
It can also be found in
vu bt301 Mid Term Solved Past Paper No. 2.
Question 1: Briefly discuss different types of investment grades of Long term ratings be PACRA.
Answer:
PACRA is the Pakistan Credit rating agency which rates different companies in Pakistan who offer bonds or stocks to investors. They rate companies independently to protect investors from companies who might default and not pay the investors. Based on their ratings given to different companies people who want to invest will know which companies to go for investment and which to avoid.
The different types of investment grades given of long term ratings given by them are:
- AAA : This is highest credit quality and has lowest expectation of risk
- AA : Very high credit quality and very low expectation of risk
- A: High credit quality and low expectation of risk
- BB : Good credit quality and as of now there is low expectation of credit risk.
