R RunTrade Nov 17, 2005 #1 Is there any line (or generally accepted level) where a company can no longer borrow and go further in debt? Net Assets < 0 ? Thanks
Is there any line (or generally accepted level) where a company can no longer borrow and go further in debt? Net Assets < 0 ? Thanks
R range Nov 17, 2005 #2 No line as long as a lender will lend. See S&P ratings definitions here: http://www2.standardandpoors.com/se...age/FixedIncomeRatingsCriteriaPg&r=1&l=EN&b=2 Even companies that are rated CCC can borrow sometimes, although security will often be required.
No line as long as a lender will lend. See S&P ratings definitions here: http://www2.standardandpoors.com/se...age/FixedIncomeRatingsCriteriaPg&r=1&l=EN&b=2 Even companies that are rated CCC can borrow sometimes, although security will often be required.
