Question: Exhibit 6 5 describes the key financial ratios Standard Poor s

Exhibit 6.5 describes the key financial ratios Standard & Poor’s 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.

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?
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  • CreatedSeptember 10, 2014
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