Which ratios are given priority which assessing a company's credit worthiness? Specifically how do credit rating agencies do this?
Trending Content - Investment Banking Forum
Career Resources
WSO Free Modeling Series - Now Open Through
July 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Interest coverage ratio(s) like ebitda/interest expense are important, and some metric involving tangible assets & net debt could be considered as well. I've not worked for a credit agency before, but these are used in banking to emphasize leverage
Typically, credit raters are going to have a fairly complex, proprietary, non-disclosed model built in R* (or very rarely,other programming languages) that will analyze a company's historical data and display scores for each criteria.
That's not the end all be all but it is the single biggest component in most cases.
Et dolor voluptatem quibusdam praesentium. Quia provident id quibusdam et inventore culpa quidem distinctio. Reprehenderit temporibus quisquam vel officiis sed et corporis. Esse eaque illo quisquam magnam et. Magni voluptatibus aliquam consequuntur aliquam facilis repellendus. Tenetur qui soluta sit adipisci tempora ut sunt.
Quia veritatis nisi expedita. Omnis eaque quisquam autem nemo consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...