Asked by Daylanie Flores on May 02, 2024
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In the highest risk S&P category of CCC/C,about 60% of the firms default within a year.
S&P Category
A classification system used by Standard & Poor's to categorize and evaluate stocks or other securities based on their sector or characteristics.
CCC/C
A credit rating symbol used by rating agencies to denote a high risk of default; regarding bonds or loans, it signifies very poor credit quality.
Default Rate
The percentage of borrowers who fail to make payments on their debts or loans as agreed, leading to a default status.
- Familiarize with the utilization of financial analytical tools and the shortcomings of financial ratios.
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Learning Objectives
- Familiarize with the utilization of financial analytical tools and the shortcomings of financial ratios.
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