Interpreting Bond Footnote Disclosures Comcast Corporation reports the following information from the Management Discussion and Analysis section of its 2012 10-K.

We, NBCUniversal and CCCL Parent are subject to the covenants and restrictions set forth in the indentures governing our public debt securities and in the credit agreements governing the Comcast revolving credit facility. The only financial covenant is in this credit facility and pertains to leverage, which is the ratio of debt to operating income before depreciation and amortization, as defined in the credit facility. We test for compliance with the financial covenant for this credit facility on an ongoing basis. As of December 31, 2015, we met this financial covenant by a significant margin. We do not expect to have to reduce debt or improve operating results in order to continue to comply with this financial covenant. In addition, as a result of the acquisition of Universal Studios Japan, we consolidated approximately ¥400 billion (approximately $3.3 billion as of December 31, 2015) in term loans that contain certain financial covenants. As of December 31, 2015, Universal Studios Japan was in compliance with all of these covenants.

a. The financial ratio to which Comcast refers is similar to those discussed in the section on credit ratings and the cost of debt. What effects might these ratios have on the degree of freedom that management has in running Comcast?

b. What pressures might management face if the company’s ratios are near covenant limits?