Using our risk rating and profitability model, compare two scenarios regarding a loan issuance. Compare the ratios of the two scenarios below:

	Scenario 1	Scenario 2
Debt Service Coverage Ratio	1.89	5.19
Adjusted EBITDA/Interest	8.85	9.09
Debt/Equity	0.86	0.86
Total Liabilities/Tangible Net Worth	1.78	1.78
Current Ratio	2.03	2.03

If the companys balance sheet is the same for both scenarios, what could have caused the changes in the ratios for Scenario 2?

Longer amortization period in the loans.

Higher interest rates charged for any of the loans.

A smaller loan amount in any of the loans.

A higher loan amount in any of the loans.