Question

Ratings agencies consider which of the following in making a decision about a specific rating Legal...

Ratings agencies consider which of the following in making a decision about a specific rating

Legal structure of the bankruptcy remote entity
Credit quality of the deal participants
Integrity of the cash flow structure
Quality of the credit enhancement
All of the above

Homework Answers

Answer #1

option (E) is correct.

Rating agencies consider all the factor for repayment of debt liability by an individual or company and it shows the the opinion of rating agency for a particular borrower based on their analaysis.All the factor relating to company management integrity policies and risk tolerabce level is also cosidered at the time of determing rapayment capabilities of any company.These points also taken into care by credit rating agency

A)industry risk

B) solvency Risk

C)profitability

D) cash flows,capital structure,financial flexibilty and other points as may be considered neccessary by rating agency for the purpose of forming opinion on the Rating of company.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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...
Which of the following is not true about subunits in decentralized organizations? Decision-making power resides in...
Which of the following is not true about subunits in decentralized organizations? Decision-making power resides in individual subunits. Decision-making power resides in multiple subunits. Subunits interact by supplying goods to one another. Subunits interact by supplying services to one another.
Which of the following statements about making decisions is correct? Only relevant financial information should be...
Which of the following statements about making decisions is correct? Only relevant financial information should be considered. All information should be considered in the final decision. Management should consider both relevant financial and non-financial information. Management accountants should provide the information, but they should not make recommendations. It is up to the managers to make decisions.
12. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
12. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm 's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all...
Which of the following is not an objective of the financial reporting? a. provide info about...
Which of the following is not an objective of the financial reporting? a. provide info about resources of business and claims to those resources b. provide info on the fair market value of the business c. provide info that is useful in making credit and investment decisions d. provide info useful in assessing cash flow prospect
An investigator conducts an experiment involving the effects of background information on jurors’ decision making. All...
An investigator conducts an experiment involving the effects of background information on jurors’ decision making. All participants watch a video of a trial in which a woman is accused of shoplifting. Before viewing the video, each participant is given a background sheet with information about the accused woman. Each participant is randomly assigned to one of three conditions. Participants in group 1 are given a background sheet that states that the woman has previously been convicted of shoplifting three times....
9. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
9. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...
Which of the following could be a sunk cost? Irrational decision-making that led to a transaction....
Which of the following could be a sunk cost? Irrational decision-making that led to a transaction. The expected economic loss of a transaction. The original cost of the item. All of these answers. Which of the following is the correct order of steps in a basic accounting flow? Analyze the transactions, make journal entries, prepare statements, make adjusting entries. Make journal entries, analyze the transactions, make adjusting entries, prepare statements. Make journal entries, prepare statements, analyze the transactions, make adjusting...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...
Which of the following statements about capital structure are correct? Select ALL correct answers. A company...
Which of the following statements about capital structure are correct? Select ALL correct answers. A company should always finance its business using as much debt as possible in order to optimize the capital structure. Having too little debt may increase the risk of default in repayment. A company needs to consider the current economic climate when making decisions on debt and equity proportions. Having too much equity may dilute earnings and the value of the original investors.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT