Types of rating - debt rating, Financial Management

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

  1. Long-term Debt Instruments: Debt obligations for a period over three years are known as long-term debt instruments. They are Debentures/Bonds and Preference shares.

  2. Medium-term Debt Instruments: Medium-term obligations range for a period between 1-3 years. The method of raising such funds will either be a debt issue or through the "Fixed Deposit" program of the companies.

  3. Short-term Debt Instruments: Debt obligations for a short period payable within one year or less than one year are covered under money market instruments. They are Commercial Papers and Certificates of Deposits.

Posted Date: 9/11/2012 1:28:03 AM | Location : United States







Related Discussions:- Types of rating - debt rating, Assignment Help, Ask Question on Types of rating - debt rating, Get Answer, Expert's Help, Types of rating - debt rating Discussions

Write discussion on Types of rating - debt rating
Your posts are moderated
Related Questions
Discounted cash flow analysis is the term employ to describe the technique whereby the value of future cash flows is discounted back to a present value so that the monetary values

Determine The key factor affecting financing Costs Because cost of capital is measured under the assumption that both firm's asset structure and its capital (financial) structu

Explain the Strategic alliance Two  or  more  organisations  agree  to  work  and  collaborate  informally  together  however remaining  independent  from  one  another. Simila

Working of ASIC ASIC as an independent government body enforces and regulates company and financial services laws to protect consumers, investors and creditors. It keeps the pu

Public Financial Statements of a Company The final exercise is the valuation of a publicly held company's equity. You must base your valuation on the company's public financia

Explain about the in-quote-driven according to trade intermediation. In quote-driven dealer markets, a market-maker or dealer is onto one side of each trade. (Remember that dea

The US Pension Fund System The US corporate pension system has matured along with the country's demographic cycle. It consists of both defined benefit plans and defined contrib

Q. Explain about Cash Flow Statement? Cash Flow Statement: - This is another process of cash management. A cash flow statement is the statement showing inflows as well as outfl

What does it mean when the U.S. dollar weakens in the foreign exchange market? While the U.S. dollar weakens in the foreign exchange market one U.S. dollar buys smaller amount un

Formation of Board of AMC and Restrictions on Directors Having regard to the significant role of the Board of Directors of the AMC in rendering the company's operations efficie