Question 1

Watch the YouTube video: The $3.7 Trillion Corporate Debt Question

Or per link below:

https://youtu.be/SqGYk0nmcCA

Provide a brief discussion on how corporate debt is rated.

What does a higher letter grade mean?

What does a lower letter grade mean?

Question 2

What is the concern about BBB rated debts if the economy takes a downturn? Explain.

Question 3

What is the key metric for how these ratings are assigned?Explain.

Question 4

What are the other factors that play a role in assigning ratings as identified by Moody's and S&P.