Ricotta Inc. is a food processing company that generated $80 million in operating income in the most recent year. The company has $300 million in bank loans with an average book interest expense of $15 million. The company is not rated but you have the following table to compute a bond rating: Interest coverage ratios and Default Spreads Large cap (>$5 Small cap or risky (8.50 >12.5 Aaa/AAA 0.40% 6.5--8.5 9.5--12.5 Aa2/AA 0.7096 5.5--6.5 7.5-9.5 A1/A+ 0.85% 4.25 -5.5 6--7.5 A2/A 1.00% 3.-4.25 4.5-6 A3/A /. 1.30% 2.5.-3 2.00% 4--4.5 Baa2/BBB Ba1/BB+ 3.00% 2.25--2.5 3.5.-4 Ba2/BB 4.00% 2--225 3--3.5 B1/B 5.50% 1.75-2.25 2.5-3 B2/B 6,50% 1.5-1.75 2-2.5 B3/B-- 7.25% 1.25-15 1.5--2 Caa/CCC 8.75% 0.8-1.25 1.25 -1.5 9.50% Ca2/CC 0.65 -0.8 0.8--1.25 MacBook Pro 3--4.25 4.5--6 A3/A-- 1.30% 2.5--3 4.-4.5 Baa2/BBB 2.00% 2.25 -2.5 3.5-4 Ba1/BB+ 3.00% 2--2.25 3--3,5 Ba2/BB 4.00% 1.75--2.25 2.5--3 B1/B+ 5.50% 1.5-1.75 2--2.5 B2/B 6.50% 1.25--1.5 1.5--2 B3/B-- 7.25% 0.8--1.25 1.25-1.5 Caa/CCC 4.75% 0.65 -0.8 0.8--1.25 Ca2/CC 9.50% 0.2 -0.65 0.5--0.8 C2/C 10.50%