Creditworthiness

Check whether customers placing large orders are creditworthy, get payment first, and decide in advance whether to accept credit cards and/or cheques. 

Other ratios measure creditworthiness. One such measure is the debt-to-equity ratio ... 

Restoring commercial viability and creditworthiness of the energy utilities, one-by-one and the sector as a whole, cannot no longer be avoided if Georgia sincerely wants to attract the interest of competent investors in the form of international energy companies and international financing institutions. 

Identify Creditworthy Buyers of Natural Gas (Letters of Interest)... 

Absence of creditworthy buyers negatively impacts ramp-up rates. 

Restoring commercial viability and creditworthiness of energy companies... 

The key factor in the success of nuclear power in liberalized markets will be the ability of the power industry to engage with regulatory and safety authorities, plant vendors and consumers to allocate risks to parties that are best able to manage them. By shifting part of the pre-construction, construction, operating, and market risks to other parties (regulators, plant vendors, creditworthy consumers, and so on), electricity producers are in a better position to attract potential investors (lenders, and so on). 

The South Texas Project of two ABWRs, each of 1,200 MW, is promoted by an independent producer the NRG company. NRG has been the first unregulated company to apply for a joint construction and operation license (COL in September 2007. The project financing arrangement of the STP is made possible by different federal guarantees, which aim to alleviate the construction and regulatory risks, and also by a series of PPAs with creditworthy parties. Indeed the project will be backed by long-term fixed-price contracts with municipalities and historic suppliers. 

The same creditworthiness with a Bloomberg composite rating of BBB ... 

Moreover, duration will be influenced by the floater s stmcture. In fact, the choice of the reference rate affects the duration depending on how much volatile the index is. The lower the frequency of couptm payments, the greater the price sensitivity between reset dates. Thus, while floating-rate notes have a lower price sensitivity to a change of the reference rate, fixed and floating-rate notes both have a price sensitivity to changes of credit spread reflecting the issuer s creditworthiness. A shift of the credit term structure will determine the decline of the bond s price. 

Apart from a rating one could target the balance sheet as an indicator for bondholder value.Many evaluations of creditworthiness are based on financial ratios (e.g., debt to equity ratio, liquidity or profitability ratios).Measuring bondholder value in this way is always due to delay Balance sheets of listed corporations are published quarterly at... 

From the investor s perspective, risk management can be implemented by credit research, which focuses on the analysis of creditworthiness of a company. As a first step, the company s sector(s) is screened. If a sector is sensitive to economic changes, it is strongly affected by a slowdown. So cyclical sectors tend to have lower average creditworthiness than more resistant sectors. Additionally, the competitive situation within the sector is of interest. To assess this situation criteria like the number of competitors, their market shares, their strategies, and strengths have to be scrutinized. 

However, these legal provisions do not completely isolate the credit-worthiness of the SCF from external factors, but only limit the extent to which credit risk contamination may occur. For this reason Moody s, when granting ratings, begin their analysis by assessing the creditworthiness of the SCF itself. They achieve this by principally analyzing ... 

Efficient frontiers also invariably place Treasury bills as the risk-free asset. T-bills may be risk-free from a creditworthiness point of view, bnt it is not tenable that a three-month nominal asset is a risk-free instrn-ment for someone with, say, a 30-year savings horizon. If you are investing for 30 years, over which time you are interested in your prospective real returns, then a 30-year linker (to be held to maturity) is your riskfree asset, almost by definition. 100% invested in that bond becomes the lowest risk portfolio on yonr frontier. Efficient frontier analysis starts to lose its impact once this premise is accepted, not least because you do not have a large data sample of consecutive, nonoverlapping 30-year periods (for any asset) to produce robust analysis. ... 

There should be no creditworthiness, tax or other regulatory distortions. 

Gilt strips are zero-coupon bonds created from conventional coupon gilts. Only issues actually designated as strippable gilts may be stripped. They trade as conventional zero-coupon bonds and are deemed as conventional gilts in terms of their creditworthiness. 

Investors should review the lender s origination process, the lending criteria for the loans and any warranties for that specific transaction. This review should consider the extent of the origination process, where the lender obtains its business and what resources are available to perform it. Any procedures for assessing the creditworthiness of the borrower will be important, particularly for the smaller borrowers, as well as the valuation process. 

Once issued the yields on government bonds across different maturities provide a benchmark for yields on other less creditworthy bonds. 

The evaluation of a nuclear power plant project in a developing country will certainly include the project-specific considerations of economic viabiltiy, debt servicing capacity and project soundness, both the pre-operational and operational aspects, and will draw also on experience from other projects in the country. Still, according to the national export financing institutions, the creditworthiness of the country will be a primary consideration and involves such aspects as ... 

Banks tried to hedge their exposure to super senior ABS CDO by buying credit protection from monoline insurers. The typical transaction involved a negative basis trade in which the bank would hold the super senior ABS CDO position, typically rated AAA and also buy credit protection from a monoline insurer. However, these hedges suffered from wrong way exposure of the monoline counterparty. The wrong way exposure exists because the counterparty s creditworthiness is lowest when the exposure is largest. 

Banks—companies creditworthiness, companies ability to pay back loans, and loan approvals. 

Perhaps this makes no economic sense, but here is an example that will make things clearer. Suppose you buy a bond with a 1,000 face value, with a 10-year maturity, and it pays you interest of 5 percent per year. In three years time, interest rates have risen, and the same bond issuer (or another issuer with the same creditworthiness) is now issuing bonds with an 8 percent... 

To assess credit risk, individual investors are made aware of the issuer s creditworthiness by agencies such as Standard Poor s, Moody s, Fitch, and other bond-rating firms. Often, to make an issue more attractive, an issuer— usually a company or a municipality—will seek the stellar reputation of an underwriter (Salomon Smith Barney, Merrill Lynch, etc.) and now, as additional strength, will include a layer of insurance in the deal—all to reassure investors that credit risk is minimal. 

Some issuers are more creditworthy than others. When a bond issue s price is high and the yield is low, it usually means that the company or municipality has no risk of default. U.S. Treasury securities are priced very high and have a low yield precisely because of the reputation of their issuer the U.S. government. 

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