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Basic Question 11 of 20

All of these factors are considered in assessing the ability of an issuer to pay except ______.

A. industry trends
B. track record
C. regulatory environment
D. special event risk

User Contributed Comments 6

User Comment
anricus Surely the track record of a company in payment of its liabilities in the past is considered?
ehc0791 track record is character, not capacity.
Khadria Right. the question is about CAPACITY .
JKiro "character" ---> "quality"
"capacity" ---> "ability"
"covenant" -->"presence/abscence of -limitation-"
cong past performance or track records falls under character.
erinelize thanks, JKiro.
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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe credit risk and its components, probability of default and loss given default

CFA® 2025 Level I Curriculum, Volume 4, Module 14.