W are the benefits of credit risk grades and pd


1. Explain how the output of EIIF study is converted into a credit risk grade and PD.

2. What are the benefits of credit risk grades and PD?

3. Explain how PDs can help in credit decisions.

4. Differentiate external rating vs. internal ratings.

5. Are external ratings reliable? Describe the precautions to take while relying on external ratings.

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