Corporates fear S&P rating changes penalise cash
Companies across Europe have expressed concern about a major overhaul of Standard & Poor’s rating criteria, which could introduce a harsher treatment for cash they hold on balance sheet, writes Jon Hay.
Dozens of corporate ratings may change, in most cases only by one notch, as a result of this and other methodology changes.
European companies have been running high cash balances since the financial crisis, and have always enjoyed favourable treatment for this from the rating agencies, which —
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