Credit Reports and Models
Reports in the Credit Reports and Models Folder
Report Name S&P Long-Term Issuer Credit Rating Cash Flow Statement S&P Long-Term Issuer Credit Rating Criteria S&P Long-Term Issuer Credit Rating Criteria - 3 Year Averages S&P Long-Term Issuer Credit Rating Ratios Report File Name FIXEDCF FIXEDIND FIXEDAVG FIXEDRAT
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Standard & Poor’s Research Insight Report & Chart Library
Before you use a Fixed Income Report…
The Fixed Income Reports allow you to analyze the ability of a company to repay its debt (creditworthiness) in much the same way Standard & Poor’s analyzes fundamental data when assigning debt ratings. There are four different Fixed Income Reports. Before you use the Fixed Income Reports, you must run the Fixed Income screen (fixedinc.scn). This screen identifies companies in the same industry group and Long-Term Issuer Credit Rating category as the company for which you want to run a report, and then creates sets that you can use with the Fixed Income Reports. Begin from the Research Insight desktop. (Open Screen) button. 1. Click the You will see the File Open dialog box. You’ll notice a list of available screens. 2. Select the Fixed Income screen, select the Classic View radio button and click Finish. You will see the Classic Screen template. Click on the blank box in the upper left-hand corner of the template above the number 1 and click the (Run) button. 3. Enter the ticker for the company you want to use in your report in the Enter Ticker field and click OK. Hint: If you are not sure of a ticker symbol, click the COMPUSTAT (North America) database. (Look Up) button to search the companies in the
4. Go to the Set column, and click the SPIND set to highlight it and click your right mouse button. You’ll see a drop-down menu. 5. Click Save Passed Set. Research Insight displays the screen results and then displays the Save File dialog box. Notice that the set name is already inserted into the File Name field. 6. Click Save. Research Insight saves the screen results as a set and then displays the Fixed Income screen template again. 7. Repeat steps 4, 5 and 6 for the next three sets in the template, FIXEDINC, RATINGS1 and RATINGS and run your report (S&P Long-Term Issuer Credit Rating Criteria or S&P Long-Term Issuer Credit Rating Ratio). Note: You must run the Fixed Income screen each time you change the company for which you are running any of the Fixed Income Reports.
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Credit Reports and Models
S&P Long-Term Issuer Credit Rating Cash Flow Statement (FIXEDCF)
Description This report uses the same format as Standard & Poor’s to analyze the components of cash flow for a specific company.
PROCTER & GAMBLE CO TICKER: PG SIC: 2840 GICS: 30301010 FY: 06 CURRENT RATING AS OF: 17Aug00 S&P LT ISSUER CREDIT RATING: AA
LONG TERM ISSUER CREDIT RATING CASH FLOW STATEMENT ($ MILLIONS)
Jun99 Income Before Extraordinary Items Depreciation and Amortization Extraordinary Items and Discontinued Operations Deferred Taxes Equity in Earnings Sale of Property, Plant, and Equipment and Sale of Investments Funds from Operations - Other Funds from Operations - Total Change in Noncash & Nondebt Working Capital 3,763.000 2,148.000 0.000 -60.000 @CF 0.000 130.000 5,981.000
Jun98 3,780.000 1,598.000 0.000 -101.000 @CF 0.000 -137.000 5,140.000 -255.000 ____________ 4,885.000 2,559.000 ____________ 2,326.000 1,462.000 ____________ 864.000 3,269.000 @CF 0.000 0.000 618.000 ____________ -1,787.000 1,315.000 1,970.000 432.000 1,929.000 158.000 0.000 -96.000 ____________ -801.000 7
Jun97 3,415.000 1,487.000 0.000 -26.000 @CF 0.000 5.000 4,881.000 1,001.000 ____________ 5,882.000 2,129.000 ____________ 3,753.000 1,329.000 ____________ 2,424.000 150.000 @CF 0.000 0.000 211.000 ____________ 2,485.000 -160.000 224.000 724.000 1,652.000 134.000 0.000 -31.000 ____________ 276.000 7
Jun96 3,046.000 1,358.000 0.000 328.000 @CF 0.000 289.000 5,021.000 -863.000 ____________ 4,158.000 2,179.000 ____________ 1,979.000 1,202.000 ____________ 777.000 358.000 @CF 0.000 0.000 71.000 ____________ 490.000 242.000 339.000 619.000 432.000 89.000 0.000 -63.000 ____________ 46.000 7
Jun95 2,645.000 1,253.000 0.000 181.000 @CF 0.000 -163.000 3,916.000 -348.000 ____________ 3,568.000 2,146.000 ____________ 1,422.000 1,062.000 ____________ 360.000 623.000 @CF 0.000 0.000 406.000 ____________ 143.000 -429.000 449.000 510.000 114.000 66.000 0.000 50.000 ____________ -345.000 7
-437.000 ____________ Operating Cash Flow 5,544.000 Capital Expenditures 2,828.000 ____________ Free Operating Cash Flow 2,716.000 Cash Dividends 1,626.000 ____________ Discretionary Cash Flow 1,090.000 Acquisitions 137.000 Sale of Property, Plant, and Equipment @CF Investments - Increase 0.000 Sale of Investments 0.000 Other Sources (Uses) of Cash 790.000 ____________ Prefinancing Cash Flow 1,743.000 Current Debt - Changes 689.000 Long-Term Debt - Issuance 986.000 Long-Term Debt - Reduction 334.000 Purchase of Common and Preferred Stock 2,533.000 Sale of Common and Preferred Stock 212.000 Financing Activities - Other 0.000 Exchange Rate Effect Cash and Equivalents - Change Format Code -18.000 ____________ 745.000 7
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Standard & Poor’s Research Insight Report & Chart Library
S&P Long-Term Issuer Credit Rating Criteria (FIXEDIND)
Description This report compares nine ratios for a company to its industry as a whole, to other companies in its S&P LongTerm Issuer Credit Rating category and to the S&P Industrials. (Note: Before you run this report, you must first run the Fixed Income screen and save the sets. For instructions on running this screen, see page 58).
CAPITAL ONE FINL CORP TICKER: COF FY: 12 DATE: Dec99 CURRENT RATING AS OF: 17Aug00 S&P LT ISSUER CREDIT RATING: BB+ GICS: 40201010 SIC: 6141 ————- INDUSTRY COF Min Long Term Debt % of Total Capital Pretax Interest Coverage (x) Cash Flow Interest Coverage (x) Cash Flow % of Long Term Debt Asset Turnover (x) Equity Book Value/ Book Value of Liabilities Return on Total Capital (%) Operating Income % of Sales Total Liabilities % of Tangible Net Worth 71.9 -4,083.3 S&P LONG TERM ISSUER CREDIT RATING CRITERIA
Consumer Finance PERSONAL CREDIT INSTITUTIONS ————RATING CATEGORY ———————Avg Max Min Avg Max 44.8 13,427.5 17.6 29.7 40.8
S&P INDUSTRIALS ———————----------Min Avg Max 0.0 32.3 213.8
2.4
-7,046.0
-219.5
495.6
5.4
11.2
16.7
-7,122.3
336.1
114,496.1
2.3
-6,364.0
-183.7
584.7
9.8
15.2
19.5
-6,735.3
230.4
76,195.4
13.8 -339,900.0
-7,679.2
17,977.7
59.2
97.8
136.0
-116.7
985.5
105,133.7
0.3
0.0
0.8
6.2
1.0
1.4
1.7
0.1
1.2
4.5
0.1
-0.9
6.0
217.1
0.3
0.6
1.1
-0.2
1.0
8.0
6.7
-7,164.2
-31.9
14,083.3
5.8
13.0
22.2
-223.2
11.9
93.1
29.1
-47,050.0
-1,008.6
37.0
12.6
14.7
18.5
-53.9
19.4
66.8
779.9
-9,014.8
9.9
4,894.6
132.2
217.5
344.1
-24,132.9
276.5
58,544.3
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Credit Reports and Models
S&P Long-Term Issuer Credit Rating Criteria - Three Year Averages (FIXEDAVG)
Description This report displays 3-year averages for nine ratios for each company in your company's industry group. (Note: Before you run this report, you must first run the Fixed Income screen and save the sets. For instructions on running this screen, see page 58.) This report includes a set expression for generating the report. Press Enter to accept it when you are prompted for a set expression.
LONG TERM ISSUER CREDIT RATING CRITERIA - 3 YEAR AVERAGES
Sr Debt Rating Current Sr. Rating Sr Rating 3 Yrs. Ago LTD%of Total Cap Pretax Int Cov Cash Flow Int Cov Cash Flow %of LTD Asset Turnover Eq Bk VI/ Bk Val LB Rest on Op Income Tot Liab Total Cap % Sales % TanNW
Company Name
MERRILL LYNCH & CO MORGAN STANLEY DEAN WITTER AXA FINANCIAL INC SALOMON SMITH BARNEY HLDGS LEHMAN BROTHERS HOLDINGS INC BEAR STEARNS COMPANIES INC SCHWAB (CHARLES) CORP DONALDSON LUFKIN & JENRETTE PAINE WEBBER GROUP WADDELL&REED FINL INC -CL A BRASCAN CORP -CL A LEGG MASON INC JEFFERIES GROUP INC AMERITRADE HLDG CORP -CL A
6 6 7 8 8 8 8 9 10 11 11 11 12 17
AAAAA+ A A A A ABBB+ BBB BBB BBB BBBB
AAA+ A A A
BBB+ BBB BBB BBB-
80.0 59.4 46.5 65.0 79.3 70.2 19.0 54.9 61.9 60.8 32.1 21.0 31.0 19.7
1.2 1.5 2.0 1.3 1.1 1.3 10.0 1.2 1.3 16.0 3.5 2.7 2.5 1.5
1.2 1.3 @NC 1.2 1.1 1.2 8.4 1.1 1.2 10.8 3.0 2.3 2.0 1.5
6.4 18.4 @NC 11.9 4.4 7.8 149.7 15.5 13.8 @NC 18.6 86.8 50.1 20.8
0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.8 0.1 0.3 0.3 0.2
0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.7 0.7 0.2 0.1 0.1
3.7 9.4 8.0 6.3 2.8 4.4 20.0 6.9 6.9 43.4 5.3 13.1 12.7 7.9
57.8 58.5 27.5 62.0 83.0 60.0 24.2 60.5 48.8 49.2 44.7 26.6 27.9 27.2
6,663.4 2,090.7 2,976.0 2,711.2 3,077.0 3,370.6 1,375.9 2,793.0 2,188.4 488.6 149.5 588.9 712.4 1,343.1
Average
50.1
3.4
2.8
33.7
0.2
0.2
10.8
47.0
2,180.6
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Standard & Poor’s Research Insight Report & Chart Library
S&P Long-Term Issuer Credit Rating Ratios (FIXEDRAT)
Description This report compares nine ratios for a company to other companies in its industry. The results are grouped by Senior Debt Rating category. (Note: Before you run this report, you must first run the Fixed Income screen and save the sets. For instructions on running this screen, see page 58).
AMOCO CORP TICKER: AN FY: 12 DATE: Dec97 CURRENT RATING AS OF: 23Apr98 SENIOR DEBT RATING: AAA S&P LONG TERM ISSUER CREDIT RATING RATIOS PETROLEUM REFINING SIC: 2911
Long Term Debt % of Total Capital Rating ————AAA AA A BBB Speculative In Default AMOCO CORP Min 3.5 15.6 16.0 27.1 25.7 @NC Avg 17.0 21.6 28.2 42.4 51.2 @NC 22.3 Max 37.6 26.8 41.6 66.5 69.2 @NC x Min 5.2 4.3 5.2 0.6 0.3 @NC
Pretax Interest Coverage Avg 11.9 10.3 8.8 4.2 3.1 @NC 9.9 Max 15.8 15.9 17.6 7.3 8.3 @NC
Cash Flow Interest Coverage x Min Avg Max 6.6 4.7 6.6 2.3 0.9 @NC 13.9 10.7 11.3 5.1 4.5 @NC 13.0 20.5 14.6 28.7 7.7 12.4 @NC
Cash Flow % of Long Term Debt Rating ————AAA AA A BBB Speculative In Default AMOCO CORP Min 56.7 73.4 53.2 7.9 -1.2 @NC Avg 260.6 111.2 89.6 44.4 28.7 @NC 107.9 Max 683.6 158.7 171.1 107.2 66.3 @NC x Min 1.0 0.7 0.7 0.6 1.5 @NC
Asset Turnover Avg 1.0 1.0 1.2 1.5 2.2 @NC 1.0 Max 1.3 1.3 1.6 2.8 3.3 @NC
Equity Book Value/ Book Value of Liabilites Min 0.7 0.4 0.5 0.3 0.3 @NC Avg 0.9 0.7 0.7 0.6 0.5 @NC 1.0 Max 1.1 1.2 0.9 1.1 1.1 @NC
Rating ————AAA AA A BBB Speculative In Default AMOCO CORP
Return on Total Capital % Min Avg Max 11.2 5.4 6.8 -1.0 -5.6 @NC 12.8 12.1 11.3 8.0 3.4 @NC 12.8 15.9 14.9 14.3 29.5 6.8 @NC
Operating Income % of Sales Min 14.1 13.1 8.8 4.8 2.6 @NC Avg 16.3 17.7 15.0 13.7 7.1 @NC 17.6 Max 17.6 25.5 21.8 43.9 10.6 @NC
Total Liabilites % of Tangible Net Worth Min 92.1 86.4 107.4 -465.9 88.6 @NC Avg 110.3 167.1 161.9 163.6 245.5 @NC 99.1 Max 140.4 302.2 194.8 333.2 383.3 @NC
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