Standard & Poor's

1 Executive Summary Organisations and governments across the world have become increasingly dependent on debt over the last few decades. Goods and services are provided on credit and debt is granted to organisations and governments by lenders in different parts of the world. The providers of credit facilities, also known as investors, require a certain level of comfort that the security issuer will be able to repay the debt. Investors must analyse the risk associated with the globalisation in the

| Case 1: Allen Distribution Company | Would we extend the $1,000 credit line to the Morse Photo Company? | | | 11/27/2010 | Introduction to Case problem and important points to be covered The core problem for Allen Distribution Company is how to distinguish from the marginal accounts the difference between good creditors and bad creditors. Especially we show how the difference between creditors can be utilized in practice by the credit representatives. For this we provide clear

As was previously stated, Moody’s committed no crime or infraction, yet one cannot overlook a somewhat lax stance in regards to it’s’ ratings on residential mortgage backed securities. Chairman and Chief Executive Officer of Moody’s, Raymond McDaniel, testified before the Financial Crisis Inquiry Commission that while Moody’s did observe a trend in the declining quality of mortgage-backed securities as early as 2003, that it is not the role of Moody’s nor any other credit rating agency to serve

1 Executive Summary Organisations and governments across the world have become increasingly dependent on debt over the last few decades. Goods and services are provided on credit and debt is granted to organisations and governments by lenders in different parts of the world. The providers of credit facilities, also known as investors, require a certain level of comfort that the security issuer will be able to repay the debt. Investors must analyse the risk associated with the globalisation in the

1.1 History of Credit Rating Agencies Credit rating agencies (CRAs) have been playing a significant role in financial markets around the world since the beginning of the twentieth century. The industry of credit rating originated when John Moody, a Wall Street analyst and the institutor of one of the biggest CRAs in present day, introduced a system of credit rating for railroad bonds by publishing “Moody’s Manual of Industrial and Miscellaneous Securities” in 1909. Until today, there are now

As a result, it is very difficult to argue that they can adequately represent the users’ side. Therefore, Jules Kroll wants to use another model that can assign unbiased and reliable ratings. Threat The leading ratings agencies, Moody’s, Standard & Poor’s and Fitch — a triumvirate some liken to an oligopoly, almost dominate the whole market. Their long history operations, great reputation and customers’ loyalty in the industry lead them incomparable to new entrants. Furthermore, Kroll also faces

Telus Corporation: Capital Structure Management (Case Study) Introduction Telus appeared in the late 1990’s by the merger of Alberta-based Telus and BC Telecom in an environment of significant changes for the incumbent carriers who had previously enjoyed a monopolized service offering. Soon after its creation Telus found itself in the early 2000 to be facing major hurdles of maintaining its financing plans. The early 2000 offered an environment of increased competition for telecom companies, saw

In December of 2007 the Great Recession hit not only the american but the world’s economy. According to the U.S. National Bureau of Economic Research (NBER) the struggle didn’t end in the United States until June 2009, and therefore had a duration of about 18 months. This global crisis “ranks fourth in terms of the weighted sum of countries suffering it” (NBER). Consumers, who had been the engine of the economy for the past several decades, suffered the loss of their jobs. Between 2008 and 2009,

The four fundamental factors that affect the supply of and demand for investment capital, and hence interest rates, are productive opportunities, time preferences for consumption, risk, and inflation. Explain how each of these factors affects the cost of money. In your discussion, explain why a hospital 's bond rating is important and describe the different levels. (You can use any bond rating agency for analysis). Productive opportunities are the supply and demand of capital are based on the business

INTODUCTION Small and medium enterprise(SME’s) in India have a very important place in the Indian economy. Their contribution in terms of production, export, export, employment generation and all round growth of the country is well known. The role of SME sector in the nation building is well recognized not only in India, but also across the globe. The industrial engines of Japan, china, US, Germany and Taiwan are also driven by the SME sector. Finance/credit is the most critical component in any