Long term financing
Introduction There are different ways for a multinational to raise long term finance. The International capital market consists of the international bond market and the international equity market; these are the main sources of long term finance (with bank loans). At first we will discuss the expansion of the international bond market and after, the role played by credit rating agencies in the global long term financing market. ... Rating procedure Rating agencies generally designate ratings of long-term debt through some variation of an alphabetical combination of lower and upper case letters. ... Other’s long-term rating designators are: investment grade: Aaa, Aa, A, Baa, speculative grade: Ba, B, Caa, Ca, and C. ... long-term corporate debt market, a single-rated debt issue may be priced below an issue with similar ratings from two agencies, because the absence of a second rating is interpreted as the issuer’s inability to obtain another equivalent rating. ... Finally, large broker-dealers themselves frequently obtain credit ratings as issuers of long- and short term debt.