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That desperation example should’ve been downplayed. The main point is that bond rating is largely independent of a company’s reputation in handling past debts;
by hagy 15y ago
That desperation example should’ve been downplayed. The main point is that bond rating is largely independent of a company’s reputation in handling past debts; investors are primarily concerned with the company’s future ability to honor their newly issued bonds.
- chernevik 15y agoActually, investor and rating agency decisions are influenced by their history with the company. So it can make sense to "introduce" a company to the debt markets before it has an actual need for the capital.
- hagy 15y agoI’ve been told that this comment of mine was overly naïve and idealistic and that such deals aren’t unheard of. My cynical side still views such deals as corporate politics that primarily benefit the individuals involved.