BU527 Lecture Notes - Lecture 1: Nh Hotel Group, Accorhotels, Quick Ratio

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18 Mar 2018
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Determine a credit rating for nh hoteles" debt. To determine the credit rating for nh hoteles" debt, a comparative analysis should be performed and depending on the outcome, credit rating should be established. Ratios like debt to equity, times interest coverage, current and quick ratio should be compared for both nh hoteles and accor to get the better idea where nh standing comparative to accor for debt credit rating. If the results are similar, the same rating can be assigned. However, if comparison is in favour of nh hotels, rating could be higher than potentially the rating could be higher although this is by no means certain. Times coverage ratio: ability to cover its interest expense from operating income. Interest coverage or time coverage ratio has stayed relatively constant for both nh and. Accor: accor is in better position to cover its interest payments in comparative to nh hoteles.

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