CREDIT RATINGS

Prudently sceptical evaluation of credit strength and risks, roughly 3-5 years in the future based on experience, well balanced analysis - not on a strict criteria

CREDIT FUNDAMENTALS

Future Cash Generating Ability

Future stocks of assets and other liquidity

Future levels of debt and other liabilities

AREAS FOR ANALYSIS

Industry Structure

Business Position

ability to generate cash flows

Operating

Competitive

Quality of management

Issue/Group Structure

Legal claims on cash

Sources of liquidity

Accounting Policies

Aggressive?

Special Event Risk

RATIOS USED

Generic

Cash Flow to Debt

Leverage

Including

All liabilities

Cash Coverage

Industry Specific