Comcast Corporation reports long-term senior notes totaling over $31 billion in its 2007 10-K. Following are selected ratios from Exhibit 8.6 computed for Comcast Corp. utilizing its 2007 data.

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This debt is rated "Baa" by Moody's, which is a lower medium grade. Examine the ratios provided above. (Hint: Compare Comcast's ratios to the ratio values reported in Exhibit 8.6.) What factors do you believe contribute to Comcast's credit rating being less than stellar?

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EBITA/Average assets EBITA/Interest expense EBITA margin Operating margin (Funds from operations + Interest expense)/Interest expense. Funds from operations/Debt Debt/EBITDA Debt/Book capitalization 6.95% 3.40 41.70% 16.57% 4.84 28.07% 2.43 31.39%