| Abstract: | The price of a company's stock is one of the many factors that Standard&Poor's Ratings Services may consider in rating a company's debt. However, a company's stock price, by itself, is never the primary factor in how we analyze the creditworthiness of a company. Instead, we emphasize fundamental analysis in our approach. A company's stock price can be important in two ways. First, it can affect the company's ability to raise equity capital: When the stock price is very low, issuing new shares can become an ineffective strategy for raising capital. In some cases, issuing new stock below a specified price may trigger payment obligations to shareholders who purchased the company's stock at a higher price. Second, sudden
|
| Sector: | Asset-Backed Commercial Paper, Asset-Backed Securities, Collateralized Debt Obligations, Commercial MBS, Corporations, Financial Institutions, Global Issuers, Insurance, International Public Finance, Public Finance, Real Estate Companies, Residential MBS, Servicer Evaluations, Sovereigns, Structured Finance, Utilities
|
