Which one of the following most accurately describes the function of credit rating agencies such as ...........

Economic Affairs Financial Markets

Which one of the following most accurately describes the function of credit rating agencies, such as Moody's or Standard & Poors?

An assessment of the likelihood of countries defaulting on their debts

An assessment of the likelihood of a bond or loan interest and/or capital not being paid and the extent to which the lender is protected in the event of a default

A rating of the trustworthiness of a country’s leaders

A rating service ranking country’s industry and banks in terms of the quantity of loans

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Explanation:

2nd option is correct i.e. An assessment of the likelihood of a bond or loan interest and/or capital not being paid and the extent to which the lender is protected in the event of a default is the function of credit rating agencies such as Moody's or Standard and Poors.