Types of rating - debt rating, Financial Management

Assignment Help:

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.


Related Discussions:- Types of rating - debt rating

Explain systematic risks in financial management, Q. Explain Systematic Ris...

Q. Explain Systematic Risks in Financial management? Systematic risk in non-diversifiable and is associated with the securities Market as well as economic, sociological, politi

Explain the nature of a concessionary loan, What is the nature of a concess...

What is the nature of a concessionary loan and how is it handled in the APV model? A concessionary loan is a loan that is provided by a governmental body at below the normal ma

Operating cycle, discuss an operating cycle of vegetable growing in Uganda

discuss an operating cycle of vegetable growing in Uganda

Advantage to corporation of investing in working capital, What is the prima...

What is the primary advantage to a corporation of investing some of its funds in working capital?  By investing in working capital a firm acquires the liquidity it needs helpin

Determine about the risk management systems, Determine about the risk manag...

Determine about the risk management systems Management must report to board their review and implementation of internal controls and risk management systems. The board must rev

Example of securitization, The process of securitization can best be ...

The process of securitization can best be understood by taking the following example. Assume that there exists an NBFC which has hire purchase as its major busine

Calculate the expected return and standard deviation, Benjamin Tang current...

Benjamin Tang currently has holdings in the following three companies:                                                                             E(R)                      σ

Calculate roe when roe may be calculated more simply, Why would an analyst ...

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst wouldn't use the Modified Du Pont eq

Explain the disadvantages of ifrs 8, Disadvantages of IFRS 8 Recon...

Disadvantages of IFRS 8 Reconciliations may be time consuming. Less comparable with other organisations, as every entity has a different way of running their business.

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