Credit quality significance

Individual gilts are given names such as the 5% Treasury 2012 or the 9% Conversion 2011. There is no significance attached to the name given to a gilt, they are all identical in makeup and credit quality, and they all trade in the same way. Most issues in existence are now Treasury issues, although in the past it was sometimes possible to identify the purpose behind the loan by its name. For example a Conversion issue usually indicates a bond converted from a previous gilt. The 3V2% War Loan on the other hand was issued to help refinance loans raised to help pay for the 1914-18 war. The 3% Gas 1995/98 was issued to finance the nationalisation of the gas industry and was redeemed in 1998. 

Financial ratios are condensed data reporting quantifiable facts. With their help, complicated facts, structures, and procedures of corporations are depicted in a simple way to permit a fast and comprehensive overview. Thus, financial ratios are appropriate for the complex task of comparative credit quality assessment. To simplify the methodology, the number of financial ratios used should not be too large, and every financial ratio must be economically plausible. The selection of particularly appropriate financial ratios is a significant component of every rating methodology. These financial ratios should represent areas of relevance for creditors as exactly as possible, like debt/equity ratio, profitability, and liquidity. In this context, not only the level of these financial ratios is important but also their development over time. 

On the basis of the selected appropriate financial ratios that show significantly different group means for industrial corporations of good and poor credit quality and are additionally fundamentally clear indicators, a quantitative rating model is developed with the help of discriminant analysis. 

One strength of the American system, beyond the collaboration between industry and academic institutions of high quality, rests in the competition between laboratories, a hallmark of the free enterprise system. Although it is difficult to assign ultimate credit for discoveries, it is safe to say that the industrial laboratories make a significant contribution to science. They stand now as the prime developers of new medicinals, a fact pointed out by Sir Derrick Dunlop (2) in a statement made in 1967 Of the seventy most valuable drugs introduced to medicine in this century since the discovery of aspirin in 1899, sixty were discovered and developed by scientists in the laboratories of industry. ... 

Quality Assurance/Quality Control Reliable analytical techniques for the determination of total PGM concentrations as well as of PGM-species will become of significant importance in future. Harmonization of analytical results is particularly important in areas concerned with international trade and where it is necessary to assure mutual product recognition. In trade, health, safety, and environmental protection, the clients of analytical laboratories are increasingly in need of proof of reliability and creditability of the results Once measured, everywhere accepted . Therefore, internationally accepted standards need to... 

The invention and industrial application of fluid catalytic cracking is credited by some historians for contributing significantly to the Allied victory in World War 11 because of the wide availability of quality automotive and aviation fuel. 

Of these factors, one of the most significant is the term to maturity. The term structure of credit spreads exhibits a number of features. For instance, lower-quality credits trade at a wider spread than higher-quality credits, and longer-dated obligations normally have higher spreads than shorter-dated ones. For example, for a particular sector they may look like this ... 

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