In assessing the ability of an issuer to service its debt, analysts consider qualitative factors in addition to financial ratios calculated from the financial statements of the issuing corporation.

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Analysts consider both quantitative factors, such as financial ratios from financial statements, and qualitative factors, such as management quality, industry position, and competitive advantages, to assess an issuer's ability to service its debt.

In Assessing the Ability of an Issuer to Service Its