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Company sector-based interest rate + credit rating premium + current ratio premium + debt to equity
ratio premium
Sector
High Credit Rating Premium High Current Ratio Premium: Low Debt to Equity Premium:
3% 2% 2%
2
15.5%
The chargeable interest rate Base interest rate: 6.5% Base interest rate: 5.5%
0.664-1.207 Higher credit rating-> lower High current ratio -> lower Low D/E ratio -> lower
loss given default loss given default probability of default
1.207-1.953
18.5%
The chargeable interest rate 5 Debt to Equity Ratio
4 Energy Health Care Technology
2 0.686-1.389
13.5% The chargeable interest rate
0.767-1.512 Credit Rating
3 Base interest rate: 5% 4
Debt to Equity Ratio Current Ratio Credit Score 2 t rate 14.5%
1.389-2.726 interes
1.512-4.014 argeable
AA, A 0.927-2.500 0.625-2.380 The ch
2 Debt to Equity Ratio
16.5% 5 3
The chargeable interest rate
4 AA, A 2.500-6.290 2.380-6.747 The chargeab
le interest rate
BBB Credit Rating Current Ratio 17.5%
0.253-1.411 Current Ratio 7 2 5
BBB
7 Debt to Equity Ratio
2
19.5% Debt to Equity Ratio 1.411-3.077 2
The chargeable interest rate 4 12.5%
0.615-1.561 rest rate
Current Ratio argeable inte
2 4 1.056-2.754 The ch
0.408-1.614
1.561-3.041 0.769-1.867
3 2.754-6.747
Debt to Equity Ratio Current Ratio AA, A The chargeab
22.5% 5 4 1.614-3.023 Debt to Equity Ratio le interest rate
The chargeable interest rate 1.867-3.815 15.5%
5
2 0.931-1.916 2
BBB Current Ratio
2 1.916-4.993 2
17.5% 7 st rate 18.5%
The chargeable interest rate le intere
2 argeab
0.6333-1.0740 1.024-2.149 The ch
1.254-1.992
15% 2.027-4.039 The chargeab
The chargeable interest rate 5 le interest rate
19%
5