Standard and poor rating for souter corp bonds

Assignment Help Financial Management

Reference no: EM131919616

Some of Souter Corp.'s ratios are given below:

[Earnings from continuing operations before interest and taxes] / [Gross interest incurred before subtracting (1) capitalized interest and (2) interest income] : 1.95

[Long-term debt plus current maturities, commercial paper, and other short-term borrowings] / [Long-term debt plus current maturities, commercial paper, and other short-term borrowings + shareholders’ equity (including preferred stock) plus minority interest] : 38.67

What rating would you expect from Standard and Poor’s rating for Souter Corp.'s bonds?

Reference no: EM131919616

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