ratings - Inputs for synthetic rating estimation Please...

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Start here Ratings sheet Page 1 Inputs for synthetic rating estimation Please read the special cases worksheet (see below) before you use this spreadsheet. Before you use this spreadsheet, make sure that the iteration box (under calculation options in excel) is checked. Enter the type of firm = 2 (Enter 1 if large manufacturing firm, 2 if smaller or riskier firm, 3 if financialSmall: <$5 billion Do you have any operating lease or rental commitments? Yes Enter current Earnings before interest and taxes (EBIT) = 50 (Add back only long term interest expense for financial firms) Enter current interest expenses = 8 (Use only long term interest expense for financial firms) Enter current long term government bond rate = 5.10% Output Interest coverage ratio = 2.91 Estimated Bond Rating = B+ Note: If you get REF! All over the place, set the operating lease commitment question in cell F5 Estimated Default Spread = 5.50% to No, and then reset it to Yes. It should work.
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ratings - Inputs for synthetic rating estimation Please...

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