Purpose: Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Fitch Ratings provides ratings for companies that issue debt securities.

Address: www.fitchratings.com, or go to www.wiley.com/college/kimmel Instructions Answer the following questions.

(a) In what year did Fitch introduce its bond rating scale? (See History in About Us.)

(b) What letter values are assigned to debt investments that are considered “investment grade” and

“speculative grade”? (See Ratings Definitions.)

(c) Search the web to identify two other major credit rating agencies.

Critical Thinking DECISION MAKING ACROSS THE ORGANIZATION