E. Covid-19 has led to the global contraction. Considering the negative impact of covid-19 on financial markets, how would this affect the credit rating if a company decides to issue debt in the market? Please explain it in terms of factors such as probability of default, recovery rate, credit spread or migration. F. Four Cs of credit analysis is used by analysts to evaluate creditworthiness. For each of the following scenarios, which of the Four Cs should be used for evaluation? Please also explain your answers. [6 marks] Which of the "Four Cs Scenarios 1. Company X has to pay $50,000 interest expense every year if debt is issued, but it only has an operating cash flow of $40,000 per year. 2. Company A decides to raise funds through debt issue. However, it operates in Video Rental industry which is said to be a declining industry. 3. Company Y decides to issue debt, but its management is less credible with poor track records. E. Covid-19 has led to the global contraction. Considering the negative impact of covid-19 on financial markets, how would this affect the credit rating if a company decides to issue debt in the market? Please explain it in terms of factors such as probability of default, recovery rate, credit spread or migration. F. Four Cs of credit analysis is used by analysts to evaluate creditworthiness. For each of the following scenarios, which of the Four Cs should be used for evaluation? Please also explain your answers. [6 marks] Which of the "Four Cs Scenarios 1. Company X has to pay $50,000 interest expense every year if debt is issued, but it only has an operating cash flow of $40,000 per year. 2. Company A decides to raise funds through debt issue. However, it operates in Video Rental industry which is said to be a declining industry. 3. Company Y decides to issue debt, but its management is less credible with poor track records