AirwaySim

General forums => General forum => Topic started by: Yarnam on October 11, 2014, 03:02:49 PM

Title: Credit rating (again)
Post by: Yarnam on October 11, 2014, 03:02:49 PM
I am completely bewildered at the whole credit rating calculations.

I have 102.6 M (85 M in aircraft) in Assets and 27.7 M in liabilities (debt). Pretax profit is roughly 2.5 M per week.

Why am i still at CCC? There is no way I am going to take out a loan to buy new aircraft at what is an effective rate of 16.33%. This just doesn't look right and it is killing my expansion efforts.

OR am I missing something?
Title: Re: Credit rating (again)
Post by: Sami on October 11, 2014, 04:12:45 PM
https://www.airwaysim.com/forum/index.php/topic,55763.msg322035.html#msg322035
Title: Re: Credit rating (again)
Post by: Yarnam on October 11, 2014, 04:20:40 PM
OK that formula gives me a number of 2.8. Does that number = CCC?
Title: Re: Credit rating (again)
Post by: Yarnam on October 11, 2014, 05:36:37 PM
How is the  'Retained earnings / accumulated deficit' figure arrived at?
Title: Re: Credit rating (again)
Post by: schro on October 11, 2014, 05:50:26 PM
I guess someone should tell you this. From a game play and profitability perspective, your credit rating and interest rate are virtually irrelevant. The cost of debt, even at 16%, pales in comparison to the return you will make on it (much unlike the real world where one should be more conservative with the cost of debt). So, at the end of the day, if you're laser focused on your credit rating, at least in the current game environment, I would suggest finding something else to focus on to increase your profits.
Title: Re: Credit rating (again)
Post by: Yarnam on October 11, 2014, 06:39:05 PM
Quote from: schro on October 11, 2014, 05:50:26 PM
I guess someone should tell you this. From a game play and profitability perspective, your credit rating and interest rate are virtually irrelevant. The cost of debt, even at 16%, pales in comparison to the return you will make on it (much unlike the real world where one should be more conservative with the cost of debt). So, at the end of the day, if you're laser focused on your credit rating, at least in the current game environment, I would suggest finding something else to focus on to increase your profits.

Thank you for explaining that, I appreciateit