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4. The company XYZ's borrowing ability and paying back ability is balanced, that is it does not have greater liabilities as compared to its assets.
4. The company XYZ's borrowing ability and paying back ability is balanced, that is it does not have greater liabilities as compared to its assets. The company has sufficient earnings to distribute as dividends to its investors and the credit risk associated is also low. So Moody a credit rating agency rates the company with the grade AAA. What alert does the rating agency can provide to the investor related to the company XYZ from the following? A - Ratings alert the investors that the company has an acceptable ability to repay the short-term debt. B - Ratings alert the investors that they should diversify their investment. C - Ratings alert the investor to not invest in a particular stock. D - Rating alert the investors that the company has the best ability to repay the short-term debt
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