Which the following are factors in determining a company’s credit rating?
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
b. Its times-interest-earned ratio, debt-equity ratio, and return on investment
c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments
d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow
e. Its debt-equity ratio, current ratio, and gross profit margin
Answer :
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio