medium · Corporate Credit Analysis cca-core
Urban Hotels has a management team that publicly targets a 'mid-BBB' credit rating.
Which action would be most consistent with this financial policy during an economic downturn?
- Maximizing leverage to fund acquisitions at depressed valuations
- Re-leveraging to 4.5x Debt/EBITDA to optimize the capital structure mix
- Suspending share buybacks and cutting growth capex to preserve liquidity.
- Maintaining the dividend payout by drawing down on the revolver
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