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 quick route to lifting the firm's liquidity rating up to a 'AAA' tier.
- As a risk-free instrument that has no bearing on the rating.
- As a credit-negative or high-risk signal due to the compounding debt load.
- As clear evidence of unusually robust balance-sheet strength and ample liquidity.
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