According to Fundamentals of Corporate Credit Analysis, which of the following is true? a Country risk is defined as the risk of losing revenue or market share or incurring an overall financial decline as a result of industry changes, business cycles, product obsolescence, changes in consumer preferences, changes in technology, reduction in barriers to entry, or an increase in competition 2 3 b. Financial risk quantifies business assets and growth rates, ability to withstand shocks, and cash flow to repay obligations c. Business risk is derived from a Sovereign government's ability to create an environment in which business flourishes or is stifled, including legal rights of people, regulatory framework, and rules of doing business d. Management risk is based on the amount of off balance sheet debt instruments In April 2001, Pogo Producing Company, an independent oil and gas exploration and production company based in Houston, Texas, issued $200 million 8 1/4 Notes due 2011. Consider the description of a bond below. How can this bond best be described? "Payments of and distributions on or with respect to the Notes Obligations are subordinated, to the extent set forth in the indenture, in right of payment to the prior payment in full in cash or Cash Equivalents of all existing and future Senior indebtedness, which includes, without limitation, all Credit Agreement Obligations of the Company. The notes rank prior in right of payment only to other indebtedness of the Company, which is, by its term, subordinated in right of payment of the notes. In addition, the Note Obligations are effectively subordinated to all creditors of the Company's Subsidiaries, including trade creditors. in the event of 1 any insolvency or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding in connection therewith related to the Company (or its creditors, as such) or its properties and assets, or any liquidation, dissolution or other winding up of the Company, whether voluntary or involuntary, or any assignment for the benefit of creditors or other marshalling of assets or liabilities of the Company all Senior indebtedness of the Company must be paid in full in cash or Cash Equivalents before any direct or indirect payment or distribution, whether in cash, property or securities is made on account of the Note Obligations. & Structurally subordinated b. Contractually subordinated c. Pari Passu obligation d. Collateralized obligation According to Fundamentals of Corporate Credit Analysis, which of the following is true? a Country risk is defined as the risk of losing revenue or market share or incurring an overall financial decline as a result of industry changes, business cycles, product obsolescence, changes in consumer preferences, changes in technology, reduction in barriers to entry, or an increase in competition 2 3 b. Financial risk quantifies business assets and growth rates, ability to withstand shocks, and cash flow to repay obligations c. Business risk is derived from a Sovereign government's ability to create an environment in which business flourishes or is stifled, including legal rights of people, regulatory framework, and rules of doing business d. Management risk is based on the amount of off balance sheet debt instruments In April 2001, Pogo Producing Company, an independent oil and gas exploration and production company based in Houston, Texas, issued $200 million 8 1/4 Notes due 2011. Consider the description of a bond below. How can this bond best be described? "Payments of and distributions on or with respect to the Notes Obligations are subordinated, to the extent set forth in the indenture, in right of payment to the prior payment in full in cash or Cash Equivalents of all existing and future Senior indebtedness, which includes, without limitation, all Credit Agreement Obligations of the Company. The notes rank prior in right of payment only to other indebtedness of the Company, which is, by its term, subordinated in right of payment of the notes. In addition, the Note Obligations are effectively subordinated to all creditors of the Company's Subsidiaries, including trade creditors. in the event of 1 any insolvency or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding in connection therewith related to the Company (or its creditors, as such) or its properties and assets, or any liquidation, dissolution or other winding up of the Company, whether voluntary or involuntary, or any assignment for the benefit of creditors or other marshalling of assets or liabilities of the Company all Senior indebtedness of the Company must be paid in full in cash or Cash Equivalents before any direct or indirect payment or distribution, whether in cash, property or securities is made on account of the Note Obligations. & Structurally subordinated b. Contractually subordinated c. Pari Passu obligation d. Collateralized obligation