and media devices. The company, based out of Cupertino, CA, has a credit rating of AA+ by Standard & Poor’s while Moody’s gives them an equivalent rating of Aa1. The credit rating agencies argue that Apple wasn’t worth a better rating (AAA) because of the high risks that any technology company is exposed to. Technology is always evolving making products obsolete. However, Microsoft received a better rating at AAA. These ratings are better than the ones given to the US government. Apart from a
Words: 391 - Pages: 2
graduates are employed in the BPO sector which is one of the fastest growing industries, stimulating again the economy. The President also pointed out the improvement in investment grade rating that the country was able to obtain from major credit rating agencies since 2013. As he stated, the credit rating upgrade meant “that the Philippines will be able to borrow funds for projects and programs at lower interest
Words: 542 - Pages: 3
INTRODUCTION Country risk refers to the risk of investing or lending in a country, arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country. For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks. This term is also sometimes referred to as political risk; however
Words: 5708 - Pages: 23
Principal amount: * Denomination: * Issue Price/Par Value: * Tenor/Maturity Date: * Currency of Issue: * Coupon/Coupon payment Frequency: * Class: * Status of Bonds, including subordination and/or credit enhancement, describe: * Redemption provisions (mandatory or optional), describe: * Options, put/call, if any, describe: * Conversion provisions, if any, describe: * Restrictive (or protective) covenants1, describe:
Words: 458 - Pages: 2
treatment of financial liabilities also remains a contentious area and was dropped from IFRS 9 very late in the process. “The IASB has grappled with the concept of how an entity’s own credit risk should impact the measurement of liabilities. The idea that an entity should make a gain from a decline in its own credit worthiness has been the source of much debate.” The IASB is concurrently considering other issues in financial instrument accounting, particularly hedging and impairment. Ms Hankey noted:
Words: 279 - Pages: 2
Effectiveness of Credit Risk Management on the Financial Performance of Philippine Universal Banks Marylet H. Ilagan Master in Business Administration Lyceum of the Philippines University-Batangas Effectiveness of Credit Risk Management on the Financial Performance of Philippine Universal Banks Banks are considered to be in the business to safeguard money and other valuable of the clients; provide loans, credit and payment services;
Words: 1585 - Pages: 7
underwrite and book-run all of the financings because together they committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. This created significant risk by aligning the interests of FCX and the two firms in terms of placing the debt and credit with other banks and institutional investors. Because this commitment was critical in facilitating the M&A transaction, FCX gave all of the book-running and M&A business to
Words: 1315 - Pages: 6
interbank loans and on short-term U.S. government debt ("T-bills"). TED is an acronym formed from T-Bill and ED, the ticker symbol for the Eurodollar futures contract and is an indicator of perceived credit risk in the general economy. This is because T-bills are considered risk-free while LIBOR reflects the credit risk of lending to commercial banks. When the TED spread increases, lenders believe the risk of default on interbank loans is increasing. The 2008 financial crisis led to the failure of a number
Words: 849 - Pages: 4
Bureau is in charge of credit and debit card companies and mortgage loans. This council is in place to make it easier for consumers to understand the regulations of mortgages. They make sure everyone is alert and clear of accurate information they need on a particular company. It protects homeowners in real estate transactions by making them aware of any risky mortgage they may be participating in. Dodd-Frank also established the SEC Office of Credit Ratings since credit rating agencies were giving
Words: 500 - Pages: 2
2) Rating agency: * Who are rating agencies? * Development of the rating agencies * Function of rating agencies * The procedure of rating assignment * Solicited method * Unsolicited method * Sovereign rating * Rating scale and definition * Advantages of credit rating * Disadvantages of credit rating 3) Rating agencies and companies: * Failures of rating agencies * Reasons for the mistakes of rating agencies 4) Rating agencies
Words: 2909 - Pages: 12
