Financial services sector

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Company A and Company B both have a market cap of greater than $ 5 billion and these two companies are very similar in size. Company C's market cap is significantly smaller than $5 billion. None of the three firms operates in the financial services sector. A has an interest coverage ratio of 8.30; Company B's interest coverage ratio is 5.7; Company C's interest coverage ratio is 8.29 and has a synthetic rating of A+. Which of the following is true?

a. All the other statements are correct.

b. Company A's synthetic rating higher than Company B's rating

c. Company B's synthetic rating is the lowest of all three companies.

d. Company A's synthetic rating will be A or higher

Reference no: EM133058149

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