Question
Electrical company has a A- long-term credit rating from Standard & Poors, and a 50% net debt to capitalization ratio. Mining company has a BBB+
Electrical company has a A- long-term credit rating from Standard & Poors, and a 50% net debt to capitalization ratio.
Mining company has a BBB+ long-term credit rating from Standard & Poors (a small difference from the rating on ED), and a 9% net debt to capitalization ratio
What are the factors that may explain the similarities in credit quality and large differences in financial leverage
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
