Exhibit 6 5 describes the key financial ratios Standard Poors analysts use to assess credit risk and assign credit ratings to industrial companies Those same financial ratios for a single company over time follow The company was assigned a AAA credit rating at the beginning of 2010 Required 1 Did t...

Requirement 1 The companys credit risk has increased since the first quarter of 2013 At that time th ...

Exhibit 6.5 describes the key financial ratios Standard & Poors analysts use to assess credit risk and

Question:

Exhibit 6.5 describes the key Standard & Poor€™s analysts use to assess credit risk and assign credit ratings to industrial companies. Those same for a single company over time follow. The company was assigned a AAA credit rating at the beginning of 2010.

Exhibit 6.5 describes the key financial ratios Standard & Poor€™s

Required:
1. Did the company€™s credit risk increase or decrease over these six quarters?
2. What credit rating should be assigned to the company as of Q2 in 2014?
3. In what quarter should the company€™s credit rating be downgraded fromAAA?

Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...