
Debt Maturity Structure and Credit Quality Form
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People also ask
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What are credit quality indicators?
These three indicators (NPL ratio, coverage ratio and cost of risk) should be analyzed together, because if we look at just one of them we cannot see the whole picture. For example, an entity with an above-average NPL ratio but a low cost of risk and a high coverage ratio could actually be in a healthy position.
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What is the maturity of a debt?
Debt maturity is the date at which the final repayment of a debt instrument is due. Maturity can be expressed as initial maturity (at inception, when the debt/ liability was incurred) or as remaining maturity (measured at a particular time after the liability was incurred).
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What are the factors affecting credit quality?
IN COMMERCIAL BANKS OF VIETNAM The research results show that seven factors affecting credit quality can be arranged in the following descending order of impact, namely: Credit officer, Credit policy, Management capacity, Banking technology, Risk management, Organizational work, Mobilized capital.
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What is debt maturity structure?
The maturity structure of debt can have financial and real consequences. Short-term debt—typically defined as that maturing within a year—exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises.
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How do you determine the credit quality of a bond?
These are assigned by credit rating agencies such as Moody's, Standard & Poor's, and Fitch Ratings to have letter designations (such as AAA, B, CC) which represent the quality of a bond. Bond ratings below BBB/Baa are considered to be not investment grade and are colloquially called “junk bonds.”
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What determines credit quality?
Credit rating agencies consider a wide range of factors in forming their opinions, and each has its own formula. In general, the major factors that influence the credit rating are: The entity's payment history, including any missed payments or past defaults.
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What are the 3 factors that determine credit?
The primary factors that affect your credit score include payment history, the amount of debt you owe, how long you've been using credit, new or recent credit, and types of credit used.
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Does stock liquidity affect corporate debt maturity structure?
H1: Firms with higher stock liquidity are associated with a lower proportion of short-term debt in their debt maturity structure.
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