This paper provides insight into the credit rating agencies’ methodology for rating the senior debt used to finance leverage buy-out transactions. In particular, the study focuses on examining if the initial credit ratings of leverage buy-out are influenced by the financial strategies and reputation of the private equity sponsor managing the deal. We also examine whether ratings are impacted by the state of the business cycle around the transaction close date.
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by admin | June 15, 2010 · 6:19 am
Credit Ratings in the Private Equity Industry
Filed under Articles, Economics, Finance
Tagged as business cycle, credit rating agencies, Finance, financial strategies, initial credit, Insight, leverage, Methodology, Private Equity, Private Equity Industry, reputation, senior debt