Topic_13_E1 - Topic 13 Exercise 1 Bond Analysis &...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 13 Exercise 1 Ratings on fixed income instruments are widely used in the industry. The major rating agencies are Standard & Poor’s, Moody’s and Fitch. Bond ratings are used by the industry as indicators of quality and are also used by institutional investors to construct investment policy. Bond ratings are also closely watched and reported by the financial press. Basic elements of bond ratings and key components of ratings are described in the resource center of Standard & Poor’s. After accessing this material, address the following questions: 1. What does it mean if a long-term issue rating is BBB? What does it mean if a long- term rating is BB? Clicking on the long-term ratings link accesses the actual definitions. An obligor rated ‘BBB’ has Adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. An obligor rated ‘BB’ is Less Vulnerable in the near term than other lower-rated
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/28/2009 for the course MBA MBA608 taught by Professor Martin during the Spring '09 term at Beirut Arab University.

Page1 / 2

Topic_13_E1 - Topic 13 Exercise 1 Bond Analysis &...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online