Determine the method of credit rating, Financial Management

Assignment Help:

Determine the method of Credit Rating

It is obligatory for the issuing companies to get credit rating done on debt securities issues. Credit ratings are also required for Commercial Paper and Fixed Deposits issues of the companies.  Ratings reflect the probability of companies going into default. The higher the rating, the lower the risk of default which is associated with the issue. This also has an effect on the rate of interest offered on issue. Methodology and the rating symbols remain same as in money market securities.

 


Related Discussions:- Determine the method of credit rating

What are the measures of growth, What are the Measures of growth Sa...

What are the Measures of growth Sales or market share Number of products or markets Employees Profit Number of retail stores

Arbitrage-free valuation approach, The main drawback of the tradition...

The main drawback of the tradition approach of valuation is that it discounts every cash flow using the same discount rate. For example, let us take 5-year (7.00 per ce

Illustrate the method of appraising capital investments, Q. Illustrate the ...

Q. Illustrate the method of appraising capital investments? One of the potency of internal rate of return (IRR) as a method of appraising capital investments is that it is a di

Operating lease, what is operating lease, its features, advantages, its app...

what is operating lease, its features, advantages, its applicability

Calculate current cash debt coverage ratio, Calculate Current cash debt cov...

Calculate Current cash debt coverage ratio: Financial statements for Delta Company are presented below:   Delta Company Balance Sheet December 31, 2012

Cost of capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s...

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

Return on investment , Return on Investment (ROI) In accounting it is a...

Return on Investment (ROI) In accounting it is a measure of the earning power of an industries asset. A high return on investments is desirable. ROI is widely described as net

The us treasuries and other government securities, The United S...

The United States of America issues US Treasuries, which are negotiable government debt obligations. They are popular because they are backed by the full

Role of financial intermediaries in the financial system, Role of Financial...

Role of Financial Intermediaries in the financial system: Having designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor

Explain about the financial risk, Explain about the Financial risk fina...

Explain about the Financial risk financial risk are presumed to be constant, changing cost of each type of capital, j, over time must be affected only by changes in the supply

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd