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

Understand by the term government policy agenda, Question 1: Give an ac...

Question 1: Give an account of the role of governmental bodies and officials in the making of public policies. Question 2: What do you understand by the term "Governmen

Explain the various types of l/c, Question 1 Describe briefly the various ...

Question 1 Describe briefly the various terms of payment available to an exporter and importer. Explain any one method in detail Question 2 A documentary letter of credit is

A-b trust, It is a trust developed by a married couple with the purpose of ...

It is a trust developed by a married couple with the purpose of minimizing estate taxes. An A-B trust is a trust that splits into two on the death of the first spouse. It is produc

Financial analysis project, 1. Collect three years of recent, financial...

1. Collect three years of recent, financial data (2007 - current), including the Balance Sheet, Income Statement, and Statement of Cash Flow. a. REQUIRED - paper copies o

Types of financial assets, Types of Financial Assets Majority of financ...

Types of Financial Assets Majority of financial assets used worldwide are in the form of deposits, stocks and debt. Deposits Deposits can be made either with banking or

#title., how can management use financial ratios

how can management use financial ratios

Identify an analytic theme for fictitious business, 1. identify an analytic...

1. identify an analytic theme or goal for a fictitious business or something that you are working on (e.g. Maximize revenue in a car dealership) 2. Build an Enterprise Bus Matri

Agency relationship, Solutions to shareholders and government agency proble...

Solutions to shareholders and government agency problemquestion #Minimum 100 words accepted#

Cash flow analysis, Cash flow analysis helps an analyst to identify ...

Cash flow analysis helps an analyst to identify certain financial difficulties which cannot be identified using the above ratios.  A firm may be shown

Share price movements, The management of Nelson plc wish to estimate their ...

The management of Nelson plc wish to estimate their firm's equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

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