2. (40%) Credit Ratings You have the following information for US Tobacco Co. (UST) in 2004: EBITDA Depreciation & Amortization Share Price Shares Outstanding: Corporate Tax Rate $785 million $32 million $34.88 185.5 million 38% UST is currently all equity financed, but is considering issuing $1 billion in debt, using the proceeds to repurchase shares. Estimate the impact on UST's credit rating (that is, what credit rating UST will have after the whole transaction that includes both debt issuance and share repurchase) based on the following financial ratios: 1) (10 points) EBITDA interest coverage 2) (10 points) EBIT interest coverage 3) (10 points) Debt / EBITDA 4) (10 points) Debt / (Debt + Market capitalization)