Question
Which of the following is not an action that can help improve a company's credit rating? (The financial measures used in determining company credit ratings
Which of the following is not an action that can help improve a company's credit rating? (The financial measures used in determining company credit ratings are discussed in the Help document associated with page 5 of the Camera & Drone Journal.)
Use a portion on the company's internal cash flows and new issues of common stock to prepay 5-year and/or 10-year loans
Temporarily reduce annual dividend payments to shareholders and use the cash saved from lower dividend payments to help prepay 5-year and/or 10-year loans
Make sure the company pays off any 1-year loans (and temporarily avoids further use of 1-years loans) because 1-year loans are considered a current liability and thus reduce the company's current ratio
Strive to increase operating profits (higher operating profits boost the company's interest coverage ratio)
Place increased attention on expanding operations in all four geographic regions -- the resulting growth in sales and market share companywide will increase the company's market penetration and improve the company's financial standing in the eyes of creditors
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