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Q2: Given the following rating transition matrix, what percentage of issues went from a very high-grade credit rating at the start of the year to
Q2: Given the following rating transition matrix, what percentage of issues went from a very high-grade credit rating at the start of the year to a prime credit rating at the end of the year? Table 5.2 A hypothetical average one-year rating migration table. From/To Aaa Aal Al A2 A3 Baal... B1 B2 Ca-C .-. 87 . Aal 6.15 74.9 0.31 1.6 0.13 0.53 0.02 0.13 0.01 0.17 0.01 0 0 0 0 0 2 --- Al A2 A3 Baal 0.1 0.06 0.04 0.03 0.24 0.04 0.06 0.04 75.8 5.24 1.89 0.26 8.08 76.11 6.71 1.83 2.91 5.99 73.41 6.8 0.69 2.87 6.76 72.55 0.07 0.02 0.05 0.04 0.1 0.05 0.38 0.07 0 0 0.01 0.02 Note: The top row is the starting rating; the first column is the rating at the end of one year
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