The growing role of corporate governance in credit
The existence of strong internal controls and adequate oversight of management are just as important to creditors as they are to equity investors.
These days, more and more people are asking What role does corporate governance play in credit ratings Generally speaking, corporate governance is thought of as a way to ensure the rights and address the concerns of equity holders, not creditors. Holders of a company's debt obtain their rights and
remedies through contractual terms used to create a debt instrument. Shareholders' rights, although formally dependent upon the provisions of a company's charter and bylaws, are made truly effective through the quality...
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