Rate-Determining a Bond Rating
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XL    Name          Date             
Account
End Yr
Beg Yr
Calculations
Ratios
Score
Rating
Revenue (Rev) $ EBIT / IE 1 = AAA
Net Operating Income (EBIT) $ (EBIT + DE) / IE 2 = AA
Interest Expense (IE) $ (NI + DE) / TD 3 = A
Net Income (NI) $ (CF - CE) / TD 4 = BBB
Depreciation Exp. (DE) $ EBIT / avg (TD + SE) 5 = BB
Cashflow from Operations (CF) $ (EBIT + DE) / Sales 6 = B
Capital Expenditures (CE) $ LTD / (LTD + SE) 7 = CCC
Lont-Term Debt (LTD) $ TD / (TD + SE) 8 = CC
Total Debt (TD) $ $
Stocholder's Equity (SE) $ $ Approx. Bond Rating


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