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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
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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.

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