Question

If a company presently has B+ credit rating, which one of the following will NOT contribute to achieving a higher credit rating?
A. A "low" default risk ratio
B. Larger retained earnings
C. A lower debt to assets ratio
D. A higher interest coverage ratio
E. A higher default risk ratio

Answer 1

Answer:

C

Explanation:

Answer 2

The option that would not contribute to achieving a higher credit rating for the company is  a higher default risk ratio.

What do the financial ratios mean?

A low default risk ratio mean that the company has a low probability of defualting on its obligations. This would increases its rating.

A lower debt to assets ratio indicates lower financial risk and greater solvency. A higher interest coverage ratio indicates greater solvency.

To learn more about financial ratios, please check: https://brainly.com/question/26092288

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