Types of rating - shadow rating, Financial Management

Assignment Help:

The issuer will not have to disclose the rating to the public.

The firm can, either independently or with the help of its investment banker, assess its shadow rating by proceeding in the following manner:

  1. After collecting the relevant information, various financial ratios used by rating agencies can be computed.

  2. Companies with similar projects having published ratings are identified. The financial ratios of these companies can be used for comparison.

  3. Apart from these financial ratios, the management quality, performance of parent/group companies are also assessed.

  4. More weightage is given to those factors/information that have a major impact on the performance of the company. Based on this also the strengths and limitations of the firm are identified.

  5. The ratings of the industry averages, and other companies with similar projects may be used and assigned as indicative rating.

  6. To this indicative rating, the sovereign limitations may be applied to get the final indicative rating. This rating should preferably be in the form of a range and not be specfic.


Related Discussions:- Types of rating - shadow rating

Ratio analysis, define ratio analysis. explain the advantages of ratio anal...

define ratio analysis. explain the advantages of ratio analysis

Explain the principles of taxation and double taxation, Question 1 ) A Glob...

Question 1 ) A Globalization is a procedure of international integration that arises due to increasing human connectivity as well as the interchange of products, ideas and other ph

Rating methodologies of a debt instrument, The key parameters t...

The key parameters taken into account while rating a debt instrument are as follows: 1. Industry Evaluation - This involves an evaluation of the

Statement used in working capital requirement, • Debtors :- Working Capi...

• Debtors :- Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation): [Cost of goods produces (that is raw materials + wages

Spot transaction hedge/Money market hedge, There are three parts to this qu...

There are three parts to this question. Please answer all parts. The Chicken Company, a company with headquarters in Switzerland, has a receivable of one million euro, which it wil

#fintitle..515, Hi can someone help me with my assignment also understand i...

Hi can someone help me with my assignment also understand it in order for me to do the voice thread and answer all questions that might confront me.

University , After read all the available information carefully, prepare a ...

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

Financial Analysis Management, I need this in the next 24 hours urgently. I...

I need this in the next 24 hours urgently. If you can accept this, you must be meeting the deadline with strictly no delays or full payment refund is needed

Explain the term dividend cover, Dividend cover Dividend cover measure...

Dividend cover Dividend cover measures the relationship among earnings per share and net dividends per share. The higher the altitude of dividends for any given level of EPS t

Issuer’s considerations, Issuer's Considerations Cash Flows: Issuers ma...

Issuer's Considerations Cash Flows: Issuers may consider the period for which the funds are required and try to spread the borrowings in a way to minimize the costs. Generally,

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