easy · Debt Capital Markets credit-ratings-risk
In the determination of a credit rating, what is evaluated under 'Financial Risk'?
- Quantitative metrics such as leverage (Debt/EBITDA), interest coverage, and liquidity.
- The volatility of the prevailing exchange rate between the dollar and the euro.
- The probability that the company will choose to divest its most profitable operating division.
- The risk that the company's external accounting firm becomes insolvent during the annual audit.
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