Attached you will locate Chap 13 from the textbook to help complete the assignments.
Discussion 4
Standard & Poor’s and Moody’s are the well-known and most respected credit rating agencies in the US and around the world. They publish credit rating for companies, governments, and countries. Visit Standard & Poor’s website (www.standardandpoors.com) and Moody’s website (www.moodys.com) to answer the following:
1. Discuss both agencies rating methodologies for banking industry.
2. Discuss how both agencies could be different in rating one company or one country, and give an example.
3. Discuss how these two credit rating agencies could not predict the financial crisis and bankruptcies of some banks in 2008/2009. Do you think the validity of their credit ratings was affected negatively after the financial crisis in 2008/2009?
Written Assignment 4
Select two public companies in the same industry, obtain their most recent published financial statements, and perform financial ratio analysis for both. Write a report to summarize your findings and conclusion. Your report should include:
1. Balance sheet ratio analysis
2. Income statement ratio analysis
3. Statement of cash flow ratio analysis
4. Credit rating of both companies by Standard & Poor’s and Moody’s
5. Ratio comparative analysis
6. Clear conclusion and opinion about which company you prefer to invest in, and why.
