FIN 571 / DQ#2

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Choosing a Target Debt Rating



Explain why a target senior debt rating of single-A is a prudent objective when there is only a very limited new issue market for non-investment-grade debt, and when investor willingness to purchase triple-B-rated debt is likely to be highly sensitive to the state of the economy.  Use examples and relate it to the current economic conditions. .

 

https://hbr.org/1982/07/how-much-debt-is-right-for-your-company  

 

 

Give examples and justify your answer.   

 

*** MInimum 300 words*** Unplagiarized

 

    • 9 years ago
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