Credit Analysis
You run a public company. Because you want to buy out a competitor, you go to the debt markets and issue bonds so that you can raise money for the merger.
The bonds will require a credit rating from the big credit agencies. At that point, the credit agencies will engage in a process known as credit analysis to determine the safety of the bonds, the likelihood of repayment, and the other qualities that let the market know if this is a sound, safe debt instrument...or one that faces a high likelihood of default (like a junk bond.)
This process consists of analyzing cash flow, market trends, financial projections, and a variety of financial ratios that help determine the security of this debt.
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Finance: What is the Equal Credit Opport...6 Views
Finance a la shmoop what is the Equal Credit Opportunity Act? alright people while the
federal government thinks everyone should have the equal opportunity to get [Men in Federal Government appear]
into debt isn't that sweet of them you know that Uncle Sam well he sure does
have a heart of gold this federal law makes it illegal to discriminate against
people who are applying for financing on pretty much anything legal based on
their age gender marital status religious affiliation ethnic or national
background or public assistance benefits your credit score however well that
still matters sorry just keeping it real
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