16.Which of the following factors is NOT part of the analysis of an issuer’s character? A) Conservatism. B) Succession planning. C) Strategic direction. D) Executive compensation and benefits structure. The correct answer was D) Executive compensation structure is not part of the credit analysis. Credit agencies generally try to assess management quality by understanding business strategies and policies created by management. 17.Which of the following factors is NOT part of the analysis of an issuer’s character? A) Financial philosophy. B) Track record. C) Parent company support agreements. D) Control systems. The correct answer was C) Parent company support agreements are part of the analysis of the capacity of the issuer to pay rather than the issuer’s character. 18.Which of the following items is NOT of concern to the analyst when trying to assess the ability of the firm to pay its debt? A) Material adverse change clause. B) Back-up credit facilities. C) Affirmative covenants. D) Third-party guarantees. The correct answer was C) When assessing liquidity, the analyst is concerned with the company’s financial position, operating cash flows, working capital position, back-up credit facilities, the strength of back-up credit facilities, and third-party guarantees. | 
发表于 2008-4-14 14:09
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