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|
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
B) solvency Risk
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.
Get Answers For Free
Most questions answered within 1 hours.