Security Analysis and Portfolio Management Assignment

Security Analysis and Portfolio Management - Assignment Example It was originated in USA and the first credit rating agency was set up in New York. Credit rating can be defined as the way of evaluating the credit worth of a debtor. According to Moody’s a rating is an opinion on the future ability and legal obligation of the issuer to make timely payments of principal and interest on a specific fixed income security (Gurusamy, 2009, p.88-89). In general, the evaluation of the various securities is done by the credit rating agencies regarding the ability of the debtor to pay back the financial obligations and the probability of becoming a defaulter. In addition, credit rating is also used by the individuals and business ventures that purchase bonds which are issued by the government and companies in order to determine the possibility that company or the government will fulfill its bond obligations. The credit rating is based on the records of earlier repayment and borrowing. Apart from that, the credit rating is also done on the basis of the company’s availability of assets and liabilities. ... Some of the factors are convenient and some are inconvenient. A poor credit rating of the companies or the government indicates that they have high chances of not fulfilling the obligations. A credit rating also highlights about the credit quality and credit risk. The desirable characteristics of a credit rating are as follows: - Specificity: - The rating is in accordance with or specific to the debt instrument. Relativity: - The rating is based on the willingness and the relative capability of the instrument issuer to service the obligations of the debt specific to the terms of the contract. Guidance: - The credit rating is aimed to provide guidance to the investors regarding the credit risk associated with an investment. Qualitative and Quantitative: - In order to determine the credit grade, both qualitative as well as quantitative factors are used. The judgment made is however qualitative in nature. Not a Recommendation: - The rating does not provide any kind of recommendations to hold, buy or sell the instruments. This is because of the fact that credit rating does not take into consideration factors such as personal risk preferences, market prices and other factors that may impact the investment decision. Broad Parameters: - The credit rating is based on some of the parameters of information provided by the issuer and information collected from other sources. No Guarantee: - The rating as provided by the agency does not provide any assurance for the accuracy and completeness of the information regarding the factors of rating. The increasing importance and stupendous growth of crediting rating system has been mainly due to the globalization of the credit market, moving trends towards the privatization, due to the withdrawal

Service Operations Management - Assignment Essay

Service Operations Management - Assignment - Essay Example Therefore, my initial expectations are in relation to the speed of orders as well as the quality of service that correlates to the technology capability of the company. My visit to a McDonalds presented a familiarity of most fast food chains, such as, the vibrant colors and unique furniture design that is welcoming and intriguing (McDonalds.com, 2011). As usual, the crowd of people presented a somewhat noisy environment but still manageable that you could talk to the person you came in the fast food restaurant. At prior research study, the senior management team at McDonalds Corporation conducted focus groups on learning what customers prefer to receiving excellent service that is indicated by two main elements: clean environment and reduce noise output of the site. Therefore, the identification of prior expectations are timing of moving the lines through and a clean environment that allowed a feeling of being comfortable and relaxability. The proposed approach provides the sense of willingness to wanting to purchase a meal and stay at the restaurant to eat the meal. During the visit the noise radar was somewhat high but understandable due to the amount of crowds of people in line to present their orders. The noise was not unexpected; rather, the knowing was already there in the beginning to expect some disturbance. However, the expectation was for the effectiveness of managing the noise level to having a sense of control and manageability. The definition of service relates to the inputs of elements: Ranging from the experience + outcome = service (rending a customer’s perspective). The customer lines at the fast-food restaurant were long and at times not so coordinated with children abound but just moving at a pace - that gave the customer a chance to making a wise choice of selection. Therefore, the expectations were of a more defined method of a concern of the noise level for any increase of customers or decrease that will render a satisfactory experi ence to increasing brand identity (Haritz-Menne, 2004). Mainly, the initial expectations were in the management effective staff of employees to learn how to manage the incoming traffic during busy hours. This focus on training of employees to knowing how to operate the high-tech order taking terminal machine presents a mandatory element of mastery, in which, the issue of long lines can be decrease. The goal is to ensure a faster processing of customer’s orders. Further, the review of expecting customers to understanding the many different menu items presents both an opportunity for a business - that is on perfecting customer service or presenting failure in servicing the customer. The method chosen by McDonalds proved my initial expectations that at least a certain point of experience of a staff employee will present the many choices of payment methods to moving the crowd along (McDonalds.com, 2011). However, the delimina is in the failure to understanding of the so many choi ces of payment methods the creates a lock-up of the terminal computer at times - that it creates a rush feeling of figuring out what overrides are needed to clear out transactions. The once good feeling of arriving at the fast food restaurant can be washed away that fast when the comfortable state is removed with anxiety. For instance, the customer