A financial services provider that provides computer software systems approaches you. The company started off as a small private company and has grown strongly over the past fifteen years and listed on the Australian Stock Exchange. The company has businesses in many off- shore locations, all of which are well-developed capital markets. In some parts of the world, the company has near-monopoly markets. As part of its strategy, the company uses acquisitions rather than growth to continue to expand the business. While the business is software based, it relies on continued activity in the financial markets. The company has had the same management over the past fifteen years and the senior management team are shareholders in the company. The company is rated BBB and its bonds are trading at 3.3 per cent above the comparable government bond rate, with the share price being $5.60. Your bank's experience is that the recovery rate in the event of default, the recovery rate is 50 per cent. The condensed financial accounts are as follows: $M Total current assets 66.3 Total noncurrent assets 659.9 Total assets 904 Total current liabilities 197.3 Total noncurrent liabilities 243.7 Total liabilities 473.0 Shareholder's funds 546.7 Retained earnings 84.0 Shares on issue 547,612 Earnings before interest and tax is $151,608,000 on sales of $742,613,000. The firm is requesting a loan of $150 million to assist further acquisitions.

Carry out a credit analysis on an expert basis.

Carry out a credit analysis on a market-premium basis.

Assuming the following function, make an assessment of the credit risk:

Using Altman Z score, what is the indication of credit risk ?