Credit rating

[Boot]

Company in AWS has been in red for >6 months every week and credit rating is still AAA.
And not "little" red, but -10-25% of revenue red. At current pace it will be CV<0 in less than a year.

Would not it be time to revise credit rating formula, what do you think?

[Aoitsuki]

revenue has nothing to do with credit or company value.

[LemonButt]

Company in AWS has been in red for >6 months every week and credit rating is still AAA.
And not "little" red, but -10-25% of revenue red. At current pace it will be CV<0 in less than a year.

Would not it be time to revise credit rating formula, what do you think?

If the company has zero loans and owns several aircraft, they can take out a loan using an aircraft as a secured asset, which effectively makes it zero risk for the bank.  You would need more information to say he isn't worthy of AAA.

[Sanabas]

revenue has nothing to do with credit or company value.

I think revenue does have a large impact on the loan cap, at least until you reach the maximum cap of ~80 mill in JA up to ~500 mill in MT.

[Boot]

Yes, AC can be as a secure asset, but:
1) Banks deal with money, not AC-s and AC is not a liquid asset.
2) You can take loan without securities as well and you will get still interest rate based on your AAA rating.

If CV is X and last quarter income is -X/3 (as it is in this case) and it's NOT because of AC purchases or something similar but because of high fuel price and low LF, then IMO this company does not deserve AAA credit rating.