Which of the following cannot be used as an internal credit rating model to assess an individual borrower:

Which of the following cannot be used as an internal credit rating model to assess an individual borrower:
A . Distance to default model
B . Probit model
C . Logit model
D . Altman’s Z-score

View Answer

Answer: A

Explanation:

Altman’s Z-score, the Probit and the Logit models can all be used to assess the credit rating of an individual borrower. There is no such model as the ‘distance todefault model’, and therefore Choice ‘a’ is the correct answer.