Inputs for synthetic rating estimation Spreadsheet

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Inputs for synthetic rating estimation Spreadsheet Powered By Docstoc
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Inputs for synthetic rating estimation

Enter the type of firm = 1 (Enter 1 if large manufacturing firm, 2 if smaller or riskier firm, 3 if financial service firm) Enter current Earnings before interest and taxes (EBIT) = 10000 (Add back only long term interest expense fo Enter current interest expenses = 2000 (Use only long term interest expense for fina Enter current long term government bond rate = 6.00% Output Interest coverage ratio = 5.00 Estimated Bond Rating = A Estimated Default Spread = 1.00% Estimated Cost of Debt = 7.00% For large manufacturing firms If interest coverage ratio is > ? to Rating is -100000 0.199999 D 0.2 0.649999 C 0.65 0.799999 CC 0.8 1.249999 CCC 1.25 1.499999 B1.5 1.749999 B 1.75 1.999999 B+ 2 2.499999 BB 2.5 2.999999 BBB 3 4.249999 A4.25 5.499999 A 5.5 6.499999 A+ 6.5 8.499999 AA 8.50 100000 AAA For smaller and riskier firms If interest coverage ratio is greater than ? to -100000 0.499999 0.5 0.799999 0.8 1.249999 1.25 1.499999 1.5 1.999999 2 2.499999 2.5 2.999999 3 3.499999 3.5 4.499999 4.5 5.999999 6 7
				
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Description: Inputs for synthetic rating estimation Spreadsheet can be immediately |n|downloaded and opened on your computer using Microsoft Excel.  Can be |n|modified to fit your needs or used as-is.Click to|n|a href="http://www.4expertis
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