Question $4$

$($a$)$ Describe the THREE $(3)$ issues that an institution $($say$,$ a bank$)$ will have to consider when assessing credit risk from a single counterparty. $(9$ marks$)$

$($b$)$ Discuss how $$credit quality$$ can affect the counterparty to perform an obligation. $(6$ marks$)$

$($c$)$ Differentiate between credit ratings used by banks in relation to those used by others. $(10$ marks$)$