To carry out credit analysis, one can utilize Moody's rating for the customer, assess bonds issued by the company's bank, and obtain information from credit agencies such as Equifax. These tools offer insights into creditworthiness, financial stability, and payment history, contributing to a comprehensive credit analysis.
Option A , B and D is correct.
Credit analysis involves assessing the creditworthiness of an individual or a company to determine the risk associated with extending credit. Various tools and sources can be used for credit analysis, and among the options provided:
A. Moody's rating for the customer:
Moody's provides credit ratings that assess the credit risk of entities, including customers. These ratings are valuable indicators of financial stability and the likelihood of timely repayment. Monitoring these ratings aids in evaluating credit risk.
B. Bonds the company's bank:
Examining the bonds issued by a company's bank provides insights into the financial health of the bank. It indirectly influences the credit risk associated with the customer, as the bank's stability impacts its ability to support credit transactions.
C. A banker's acceptance:
Banker's acceptances are short-term debt instruments, often used in international trade. The acceptance signifies a bank's commitment to pay a specified amount at a future date. Assessing the acceptance helps evaluate the bank's credibility and indirectly affects the customer's creditworthiness.
D. Credit agencies:
Credit agencies, such as Equifax or Experian, provide credit reports containing information on an individual's or company's credit history. These reports include details on payment history, outstanding debts, and other financial behaviors, aiding in comprehensive credit analysis.