Which of the following can help assess a company's credit risk?

A company's credit rating from agencies like Moody's is a crucial indicator of its credit risk because it directly assesses the company's creditworthiness based on its financial health, credit history, and market conditions. These ratings provide a standardized metric that investors, lenders, and other stakeholders can rely on to gauge the level of risk associated with lending money to or investing in the company.

Credit rating agencies evaluate a company's ability to repay its debts by analyzing various factors, including financial statements, overall market conditions, and past performance troubling signs. A stable or high credit rating typically indicates lower credit risk, suggesting that the company is more likely to meet its debt obligations. Conversely, a low credit rating reflects higher risk, signaling potential financial difficulties that could lead to default.

While other factors, such as stock price history, revenue figures, and market share, may provide additional insight into the company's performance and industry position, they do not solely measure credit risk in the same standardized way that credit ratings do. Therefore, relying on credit ratings offers a more precise evaluation of a company's likelihood of defaulting on its obligations.