Watch the YouTube video: The $3.7 Trillion Corporate Debt Question Or per link below https://youtu.be/SqGYk0nmcCA Provide a brief discussion on how corporate debt is rated. What does a higher letter grade mean? What does a lower letter grade mean? Question 2 What is the concern about BBB rated debts if the economy takes a downturn? Explain. Question 3 What is the key metric for how these ratings are assigned? Explain. Question 4 What are the other factors that play a role in assigning ratings as identified by Moody’s and S

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter6: Accounting Quality
Section: Chapter Questions
Problem 4QE
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Question 1

Watch the YouTube video: The $3.7 Trillion Corporate Debt Question

 

Or per link below

https://youtu.be/SqGYk0nmcCA

 

Provide a brief discussion on how corporate debt is rated. 

What does a higher letter grade mean? 

What does a lower letter grade mean? 

 

Question 2

What is the concern about BBB rated debts if the economy takes a downturn? Explain.

 

Question 3

What is the key metric for how these ratings are assigned? Explain.

 

Question 4

What are the other factors that play a role in assigning ratings as identified by Moody’s and S&P.

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