If the borrowing company's balance-sheet
accounts violate the loan covenants, two events occur: the firm may be in default under the terms of the loan and subject to accelerated repayment of the loan, and the firm may be precluded from any future loan advances.
To some degree, it backed off from the very strong balance-sheet
emphasis that initiated the project.
In addition to its balance-sheet
debt, Norfolk Southern also has off-balance-sheet
obligations tied to operating leases on locomotives, rail cars, lines of track and real estate.
In determining a life/health insurer's ability to meet its current and ongoing obligations to policyholders, balance-sheet
strength is one of the most important areas to evaluate, since it is the foundation for policyholder security.
The assigned rating is derived from an in-depth evaluation of a company's balance-sheet
strength, operating performance and business profile, compared with A.
Our goal was to expand these services to include asset/liability analysis and overall balance-sheet
management strategies," said Jim DeMasi, Chartered Financial Analyst, Vice President and Fixed-Income Strategist at Legg Mason Wood Walker Inc.
The affirmation is based on NRMA group's excellent business franchise and market leadership in general insurance in Australia, along with its very strong balance-sheet
profile, underpinned by excellent capitalization and conservative reserving standards.