easy · Debt Capital Markets secondary-trading-liquidity
How do rating agencies such as S&P or Moody's typically view the issuance of PIK debt?
- As a way to improve the company's liquidity rating to 'AAA'.
- As a risk-free instrument that doesn't affect ratings.
- As a credit-negative or high-risk signal due to the compounding debt load.
- As a sign of extreme financial strength.
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