Question

Find a company for which Moody's and/or Standard and Poor's has recently changed the credit rating...

Find a company for which Moody's and/or Standard and Poor's has recently changed the credit rating (either good or bad). Provide details on why the rating was changed. What happened to the company's stock price when the rating was changed? https://www.standardandpoors.com//en_US/web/guest/home

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Recently, Standard and Poor's downgraded the credit rating of Wells Fargo and its subsidiaries from an 'A' rating to an 'A-' rating.

The downgrade came after Wells Fargo's unfair practices of opening bank accounts without the consent of the customers came to light last year. In addition, the regulatory risk of Wells Fargo was more than expected and the poor corporate governance doesn't do good either to its credit rating.

The downgrade came in the month of February and after the downgrade, the stock price of Wells Fargo fell slightly, which is expected.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Problem 6-10 Making credit-rating changes (LO6-7) Exhibit 6.5 describes the key financial ratios Standard & Poor’s...
Problem 6-10 Making credit-rating changes (LO6-7) Exhibit 6.5 describes the key financial ratios Standard & Poor’s analysts use to assess credit risk and assign credit ratings to industrial companies. Those same financial ratios for a single company over time follow. The company was assigned a AAA credit rating at the beginning of 2013. 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 EBIT interest coverage 23.8 22.1 21.6 20.8 20.6 12.4 EBITDA interest coverage 25.3 26.4 25.6 23.2 22.9 16.5 FFO/Total...
Find a publicly traded stock which has a dividend payable to shareholders. Assuming zero growth in...
Find a publicly traded stock which has a dividend payable to shareholders. Assuming zero growth in the dividend and you require a 8% return, calculate the stock's intrinsic price value. Compare the intrinsic value with the stock's current price. If the intrinsic price is below the current price, is this a stock that is a good value for investment? If the intrinsic price is above the current price, is this stock overvalued? Use the internet to find sources of information...
Need a Simple flowchart for this information Wally Wiggins Widget Works You are the systems analyst...
Need a Simple flowchart for this information Wally Wiggins Widget Works You are the systems analyst for the Wally Wiggins Widget Works (also known as Dub 4, which is a shortened version of 4 Ws). Dub 4 produces computer keyboard components. It has been producing keyboards for more than 20 years and has recently signed an exclusive 10-year contract to provide the keyboards for all Dell personal computers. As the systems analyst, you have been assigned the task of developing...
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The...
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment? (all money received minus all money paid, round to nearest whole dollar) Ocean Pines Company had net income $475,000. They also had depreciation expense of $200,000, an increase or (decrease) in accounts receivable of $-30,000, and an increase or...
(2pts)Which of the following is not mentioned in the lecture note as an additional risk factor...
(2pts)Which of the following is not mentioned in the lecture note as an additional risk factor resulting from international business? exchange rate fluctuations political risk interest rate risk None of the above (2pts) Factor income from international investment is a component of financial account in the balance of payments True                                   b) False (2pts) Bid-Ask spread on currency quotation will be wider if the currency exhibits more volatility than others because of the country’s uncertain economic conditions True                                   b) False (2pts)...
Multiple Choice The unemployment rate is high in the city in which a company has a...
Multiple Choice The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which variance is directly impacted? Materials price variance Materials efficiency variance Labour price variance Labour efficiency variance Thomas Corporation produces stopwatches. According to company standards, it should take 1 hour of direct labour to produce a stopwatch....
Scott's Watermelon Company has the following inputs: Sales = $44,000,000 Total assets on balance sheet =...
Scott's Watermelon Company has the following inputs: Sales = $44,000,000 Total assets on balance sheet = $100,000,000 Total debt in capital structure = $30,000,000 Ke = 15% Kd = 10% (before tax adjustment) Tax rate = 40% The anticipated ongoing net operating income (EBIT) is $17,000,000. With the following data, please tell me what the total fair market value of Scott's Watermelon Company is. Amy's Pet Supply Warehouse is trying to figure out their degree of combined leverage. You aim...
Mary Milken is the CFO of the Rbeck Company in Miami, Florida. The company is a...
Mary Milken is the CFO of the Rbeck Company in Miami, Florida. The company is a closely held custom yacht builder with about 200 technical workers (engineers, marine architects, mechanics, boat workers, and so on), and 12 employees in its main office staff. Her primary job is to prepare the financial statements with the assistance of two full-time accountants. She normally follows generally accepted accounting principles, but she sometimes ignores them when she thinks they do not lead to what...
Case Abstract: Company ABC, an AE, constructor and construction management firm, recently assigned Bob Ironside to...
Case Abstract: Company ABC, an AE, constructor and construction management firm, recently assigned Bob Ironside to turn a major coal fired generating station project around. Currently at 36 percent construction completion, the project is shifting from an emphasis on civil and structural work to bulk production. Cooperation of the owner, the multi-prime contractors, and strong labor unions is cach vital for performance improvement. The analysis of this project involves: 1) identification of significant external influences on the project organization, 2)...
‏____ 34. Jane Doe, who has substantial personal wealth and income, is considering the possibility of...
‏____ 34. Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemical waste management field. She will be the sole owner, and she has enough funds to finance the operation. The business will have a relatively high degree of risk, and it is expected that the firm will incur losses for the first few years. However, the prospects for growth and positive future income look good, and Jane plans...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT