(Solved) : Summary Information On Each Company Can Be Found At Either Finance . . .

Question Description

Consolidated Edison Inc. (Ticker: ED) has an A- long-term credit rating from Standard & Poor’s, and a 50% net debt to capitalization ratio. ED is a regulated electric utility serving the New York metropolitan area. Newmont Mining Corp. (Ticker: NEM) has a BBB+ long-term credit rating from Standard & Poor’s (a small difference from the rating on ED), and a 9% net debt to capitalization ratio, substantially lower than ED’s. NEM is a global mining company. Discuss the factors that may explain the similarity in credit quality but large differences in financial leverage.

Summary information on each company can