medium · Corporate Credit Analysis credit-metrics
A cyclical commodity firm, Andean Iron, is rated BBB with Net Debt/EBITDA of 2.0x at a mid-cycle iron ore price of $95/t. If the iron ore price falls to $70/t (trough), EBITDA falls by 45%.
What is the trough Net Debt/EBITDA?
- 4.50x
- 2.45x
- 3.64x
- 2.90x
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