Which ratios are given priority which assessing a company's credit worthiness? Specifically how do credit rating agencies do this?
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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.
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