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.

[4 marks]

Scenarios	Which of the Four Cs
1. Company GDP decides to issue debt. However, it operates in an industry with 15 competitors, and it only has a market share of 2%. Investors are concerned with GDPs ability to maintain stable cash flows over time.
2. Management of Company ATT decides to issue debt. However, the management can only do so if companys debt ratio is lower than 0.7.