Thursday, May 6, 10:45 - 12:00	view all sessions this time
Corporate Finance	view all sessions this track

504 - Monitoring Liquidity in a Challenging Credit Environment

The ability of companies to maintain adequate liquidity in a difficult economic and credit environment is a key ratings concern. This applies to both investment and speculative grade rated companies, although the more specific concerns diverge somewhat at either end of the spectrum.  For all companies, Standard & Poor's focuses on cash and liquid assets, access to credit lines and capital markets, financial covenant compliance, upcoming maturities, and other financial obligations.  For investment grade companies, Standard & Poor's continues to closely monitor the ability to refinance on a timely and cost effective basis. For speculative grade companies, often there are concerns about tight covenants and/or covenant violations, and resulting loss of access to revolving credit facilities.

Alison Sullivan CFA, Standard & Poor's