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The following financial data are for two companies in the same industry. CASS HAKN Industry Average EBITDA/Interest exp 4.94 3.23 43.65 Total Debt to Capital

The following financial data are for two companies in the same industry.

CASS

HAKN

Industry Average

EBITDA/Interest exp

4.94

3.23

43.65

Total Debt to Capital

55.19%

50.2%

28.32%

FFO/Debt

0.14

0.23

3.01

Current Ratio

0.54

0.71

1.01

Credit Rating

A-

The industry is rated A- on the average. What rating would you give these two companies? Describe by using the given ratios.

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