Industry Ratios PDF

Special Comment
August 2006
Contact Phone
New York
Albert Metz 1.212.553.1653
Richard Cantor
The Distribution of Common Financial Ratios by

Rating and Industry For North American
Non-Financial Corporations: July 2006
Summary
This paper summarizes the distribution of common financial ratios across industries for North American non-financial
non-utility corporations based on the most recent fiscal year-end data. The body of the text discusses differences
across industries for Baa rated issuers; however, median financial ratios for each broad rating category for each industry
- which may be the primary interest of some readers - are presented in the Appendices.
The metrics reported include interest coverage, asset coverage, leverage, cash flow-to-debt, liquidity, asset returns,
profit and revenue stability. Precise definitions are presented in Appendix D. Data are taken from financial statements
with certain adjustments (based on publicly available information). See section I for details.
It must be stressed that this report is not intended to describe Moody's rating process or the particular ratios
favored in rating committees, but rather uses standard ratios to explore the quantitative content of ratings by industry.
Moreover, while some industry- and issuer-specific adjustments have been made to these ratios, they are not always the
precise ratios Moody's analysts use when evaluating a credit.
Ratio analysis is but one part of Moody's analytical process. Qualitative and forward-looking considerations are
also important. Interested readers are referred to Moody's Rating Methodologies for detailed discussions of our ana-
lytical approach and core ratios for each industry. In any event, when Moody's does analyze financial ratios, it uses a
multivariate approach. As a result, a simple monotonic relationship between ratings and any single ratio should not
generally be expected.
The report is organized as follows. Section I describes details of the data and methodology. Section II presents a
brief review of the distribution of these metrics in the aggregate by rating category - that is, without regard to industry
classification. Results for all Baa rated issuers by industry are presented in Section III, with subsections devoted to
each metric. Section IV contains some brief discussion and analysis.
The Appendices present the detailed statistics in three ways. Each exhibit in Appendix A focuses on a single finan-
cial metric and shows how its median values vary across industries and across rating categories. Each exhibit in Appen-
dix B focuses on a single industry and shows how its median financial ratios vary across rating categories. Each exhibit
in Appendix C presents a single rating category and shows how median financial ratios vary across industries.
Finally, definitions of the credit metrics analyzed in this report are presented in Appendix D. Descriptions of the
industry aggregates are presented in Appendix E.
While it is difficult to draw many broad conclusions, some points to consider are the following:
• In the aggregate, there exists a strong monotonic relationship between these metrics and ratings.
– The major exception is Revenue Stability: often weaker credits are characterized by weak (but stable)
revenues.
– Liquidity also does not exhibit a strictly monotonic relationship with ratings.
• Industries with consistently better-than-average metrics for Baa rated issuers include:
– Construction & Engineering,
– Healthcare,
– Metals & Mining,
– Oil & Gas, and
– Technology.
• Industries with consistently weaker than average metrics for Baa issuers include:
– Aerospace & Defense,
– Energy & Environment,
– Media,
– Packaging, and
– Retail & Distribution.
• The evidence suggests that more intrinsically risky industries (as measured by revenue stability) are
required to achieve better credit ratios to obtain a given rating.
2 Moody’s Special Comment

Table of Contents
Page
I Data and Methodology................................................................................................................. 4

II Metrics by Rating Category Aggregated Across All Industries ...................................................... 4
III Industry Study ........................................................................................................................... 5
III.1 Interest Coverage............................................................................................................................ 6
III.2 Asset Coverage............................................................................................................................... 7
III.3 Leverage......................................................................................................................................... 8
III.4 Cash Flow-to-Debt.......................................................................................................................... 9
III.5 Return on Assets........................................................................................................................... 10
III.6 Profit............................................................................................................................................. 11
III.7 Liquidity........................................................................................................................................ 12
III.8 Revenue Stability .......................................................................................................................... 13
IV Discussion............................................................................................................................... 14
Appendix A Detailed Distributions by Credit Metric....................................................................... 16
Appendix B Detailed Distributions by Industry.............................................................................. 24
Appendix C Detailed Distributions by Broad Rating Category........................................................ 35
Appendix D Definition of Financial Metrics ................................................................................... 43
Appendix E Definition of Industry Aggregates............................................................................... 44
Moody’s Special Comment 3

I Data and Methodology
Financial data for this study are taken from the most recently available fiscal year-end filings. The metrics that we
study include interest coverage, asset coverage, leverage, cash flow-to-debt, return on assets, net profit margin, liquid-
ity, and revenue stability. Please see Appendix D for definitions. As mentioned above, these are not necessarily the
ratios that Moody's uses in credit analysis.
When possible, use financial data which incorporate the industry-specific adjustments routinely used by Moody's
credit analysts.1 When such adjusted data are not available for a particular issuer, we us unadjusted data per the defini-
tions provided in Appendix D.
All the issuers in the sample carry Moody's bond ratings. The reported ratings refer specifically to the issuer's
senior unsecured rating or, in the absence of such a rating, its estimated senior unsecured rating as of July 1, 2006.2
Industry classifications are based on proprietary Moody's assignments. For descriptions, please see Appendix E.
II Metrics by Rating Category Aggregated Across All Industries

In this section we examine some of the properties of these metrics in the aggregate, that is, without regard to industrial
classification. In all cases, the statistics we report are medians. We consider the distribution of these metrics by broad
rating category.
Exhibit 1 summarizes our findings. We make the following observations:
• Most metrics are strictly monotonic with ratings:
– Interest coverage, asset coverage, cash flow-to-debt, return on assets, and profit are strictly increasing
across rating categories. Leverage is strictly decreasing, as expected.
• One metric is generally increasing in ratings:
– Median liquidity ratios are slightly lower for Baa than Ba rated issuers, otherwise they are increasing
with ratings.
• Only one metric has a weak relationship:
– Median revenue stability ratios peak at the top and bottom of the ratings distribution.
Exhibit 1: Aggregate Metrics by Rating Category

Median Median
Aaa-Aa A Baa Ba B Caa-C IG SG
Interest Coverage 16.0 8.6 5.4 3.7 1.9 0.7 6.5 2.1
Asset Coverage 3.7 2.4 2.3 2.0 1.3 1.0 2.4 1.4
Leverage 31.6% 41.7% 44.8% 49.8% 68.7% 92.2% 43.6% 66.8%
Cash Flow-to-Debt 52.4% 32.6% 25.8% 21.6% 12.1% 6.4% 28.4% 12.7%
Return on Assets 11.6% 7.5% 5.3% 4.4% 1.7% -2.1% 6.3% 1.9%
Profit 11.8% 9.0% 6.7% 5.0% 2.0% -2.6% 7.8% 2.1%
Liquidity 7.8% 4.7% 4.0% 4.3% 3.9% 3.3% 4.6% 3.9%
Revenue Stability 7.2 7.3 6.1 5.2 6.1 7.3 6.6 5.9
Source: Moody's ratings and financial database as of July 1, 2006
1. For details on particular industry adjustments, please refer to Moody's Global Rating Methodologies.
2. Please see "Moody's Senior Ratings Algorithm & Estimated Senior Ratings," July 2005 for a discussion of estimated senior unsecured ratings.

III Industry Study
In this section, we study these financial metrics by industry. We compare ratios for Baa rated issuers only. We do this
not only to make the presentation tractable, but also because not all industries are represented in all rating categories.
For instance, only ten industries are represented in the Aaa-Aa category. The Baa category is the best represented
investment-grade rating category.
Exhibit 2 lists the industries studies in this report and the number of Baa rated issuers. For descriptions of these
industry classifications, please see Appendix E.
Exhibit 2: Industry Coverage

Industry Count of Baa Issuers
Aerospace & Defense 4
Automotive 4
Chemicals 13
Construction & Engineering 8
Consumer Products 20
Energy & Environment 42
Healthcare 14
Leisure & Entertainment 9
Manufacturing 21
Media 18
Metals & Mining 14
Natural Products 7
Oil & Gas 12
Packaging 4
Pharmaceuticals 3
Retail & Distribution 21
Services 7
Technology 4
Telecommunications 19
Transportation Services 13

III.1 Interest Coverage
Exhibit 3 sorts the industries by their median Baa interest coverage ratio. The complete distribution is presented in
the Appendices. The median aggregate coverage ratios at different rating categories are highlighted for comparison.
Exhibit 3: Median Baa Interest Coverage Ratio

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
Aggregate Aaa-Aa
Oil & Gas
Healthcare
Construction & Engineering
Aggregate A
Technology
Metals & Mining
Automotive
Manufacturing
Chemicals
Consumer Products
Aggregate Baa
Services
Aerospace & Defense
Leisure & Entertainment
Retail & Distribution
Energy & Environment
Media
Aggregate Ba
Transportation Services
Packaging
Natural Products
Telecommunications
Pharmaceuticals
Aggregate B
Aggregate Caa-C
From Exhibit 3 we see that for Baa rated issuers, median interest coverage ratios are greatest for the Oil & Gas,
Healthcare, and Construction & Engineering industries, exceeding that of the aggregate A rated issuer set. At the
other extreme, the median Baa interest coverage ratio is least for the Pharmaceuticals, Telecommunications and Natu-
ral Products industries.
While coverage ratios are strictly increasing across ratings in the aggregate, that is true for only nine industries.

III.2 Asset Coverage
Exhibit 4 presents median Baa asset coverage ratios by industry. Again, the detailed distributions are reported in the
Appendices. Aggregate asset coverage ratios are monotonic within eight industries.
Exhibit 4: Median Baa Asset Coverage Ratios

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Metals & Mining
Oil & Gas
Aggregate Aaa-Aa
Automotive
Technology
Pharmaceuticals
Natural Products
Aggregate A
Chemicals
Healthcare
Aggregate Baa
Telecommunications
Aggregate Ba
Manufacturing
Services
Packaging
Consumer Products
Aerospace & Defense
Aggregate B
Media
Aggregate Caa-C
The Metals & Mining and Oil & Gas industries have median Baa asset coverage ratios greater than the Aaa-Aa
aggregate. The Media industry has the lowest median asset coverage ratio.

III.3 Leverage
Median Baa leverage ratios are presented in Exhibit 5. For only three industries do median leverage ratios decrease
monotonically with ratings, as they do in the aggregate.
This metric is least for the Metals & Mining and Technology industries, being less than the Aaa-Aa aggregate.
Aerospace & Defense and Retail & Distribution have the greatest median leverage ratios for Baa rated issuers.
Exhibit 5: Median Baa Leverage Ratios

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Metals & Mining
Technology
Aggregate Aaa-Aa
Oil & Gas
Natural Products
Automotive
Healthcare
Aggregate A
Pharmaceuticals
Manufacturing
Aggregate Baa
Telecommunications
Construction &
Media
Services
Chemicals
Aggregate Ba
Leisure &
Packaging
Consumer Products
Aerospace & Defense
Aggregate B
Aggregate Caa-C

III.4 Cash Flow-to-Debt
Exhibit 6 presents the median Baa cash flow-to-debt ratios by industry. In the aggregate, cash flow-to-debt increases
monotonically with ratings. That holds true for ten industries.
The Oil & Gas and Technology industries have median cash flow-to-debt ratios that exceed the Aaa-Aa aggregate.
On the other hand, the Energy & Environment, Media and Aerospace & Defense industries have the smallest median
ratios.
Exhibit 6: Median Baa Cash Flow-to-Debt Ratios

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Oil & Gas

Technology
Aggregate Aaa-Aa
Metals & Mining
Automotive
Healthcare
Telecommunications
Aggregate A
nstruction & Engineering
Services
Manufacturing
Aggregate Baa
Natural Products
Chemicals
Aggregate Ba
Pharmaceuticals
Consumer Products
Packaging
Aerospace & Defense
Media
Aggregate B
Aggregate Caa-C

III.5 Return on Assets
Median Baa asset returns are presented in Exhibit 7. In the aggregate, this metric increases monotonically with ratings.
That continues to hold true for eight industries.
The Construction & Engineering industry has the highest median asset returns for Baa rated issuers, nearly equal-
ing the Aaa-Aa aggregate. Oil & Gas also has much higher than average asset returns. On the other hand, the median
return on assets for Baa rated issuers was least in the Pharmaceuticals industry, nearly equal to the B rated aggregate.
Media and Natural Products also had fairly low median asset returns.
Exhibit 7: Median Baa Return on Assets

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
Aggregate Aaa-Aa
Oil & Gas
Aggregate A
Metals & Mining
Technology
Automotive
Healthcare
Manufacturing
Consumer Products
Services
Aggregate Baa
Chemicals
Packaging
Aggregate Ba
Telecommunications
Aerospace & Defense
Natural Products
Media
Pharmaceuticals
Aggregate B
Aggregate Caa-C
Source: Moody’s ratings and financial database as of July 1, 2006

III.6 Profit
Median Baa profit margins are presented in Exhibit 8. While profit margins are monotonically increasing with ratings
in the aggregate, that holds true for only six industries.
Once again, the Oil & Gas industry has the highest values for this metric, exceeding the Aaa-Aa aggregate. Tech-
nology, Metals & Mining, and Construction & Engineering also have relatively high median profit margins. As with
asset returns, the Pharmaceutical industry has the least median ratio for Baa rated issuers.
Exhibit 8: Median Baa Profit Margins

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
Oil & Gas

Aggregate Aaa-Aa
Technology
Metals & Mining
Aggregate A
Healthcare
Services
Media
Aggregate Baa
Telecommunications
Consumer Products
Manufacturing
Automotive
Chemicals
Aggregate Ba
Aerospace & Defense
Packaging
Natural Products
Pharmaceuticals
Aggregate B
Aggregate Caa-C

III.7 Liquidity
Median Baa liquidity ratios are presented in Exhibit 9. While this metric is almost monotonically increasing in the
aggregate, that holds true for only one industry: Automotive.
Note that the Pharmaceuticals, Technology, Metals & Mining and Healthcare industries have the greatest median
liquidity metrics, all exceeding the Aaa-Aa aggregate. The Media, Energy & Environment, Transportation Services,
Oil & Gas, Telecommunications, Leisure & Entertainment industries are the least liquid among Baa rated issuers, with
median liquidity actually below the Caa-C Aggregate.
Exhibit 9: Median Baa Liquidity Ratios

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Pharmaceuticals
Technology
Metals & Mining
Healthcare
Aggregate Aaa-Aa
Automotive
Manufacturing
Chemicals
Consumer Products
Natural Products
Services
Aggregate A
Aerospace & Defense
Packaging
Aggregate Ba
Aggregate Baa
Aggregate B
Aggregate Caa-C
Telecommunications
Oil & Gas
Media

III.8 Revenue Stability
Exhibit 10 presents median revenue stability metrics for Baa rated issuers by industry. Recall that this metric does not
correlate well with ratings in the aggregate. No individual industry has a monotonic relationship.
The Transportation Services, Consumer Products, Services, Pharmaceuticals, Media, Chemicals, Leisure &
Entertainment and Manufacturing industries have the most stable revenues in this rating category, while the Oil &
Gas, Construction & Engineering, Metals & Mining, Automotive, Energy & Environment and Telecommunications
industries have the least. Of course, in some cases, revenues are less stable precisely because they have been growing
very fast recently.
Exhibit 10: Median Baa Revenue Stability Ratios

0.0 2.0 4.0 6.0 8.0 10.0 12.0
Consumer Products
Services
Pharmaceuticals
Media
Chemicals
Manufacturing
Aggregate Caa-C
Aggregate A
Aggregate Aaa-Aa
Packaging
Natural Products
Aerospace & Defense
Healthcare
Aggregate Baa
Aggregate B
Technology
Aggregate Ba
Telecommunications
Automotive
Metals & Mining
Oil & Gas

IV Discussion
Exhibit 11 summarizes the results presented above. For each metric, we report its standardized (mean 100, standard
deviation 1) value and sort the industries by their average score.3 The Oil & Gas, Technology, Metals & Mining,
Healthcare and Construction & Engineering industries have the highest average score, while the Aerospace &
Defense, Retail & Distribution, Media, Packaging and Energy & Environment industries have the lowest.
Exhibit 11: Summary of Standardized Baa Metrics

Cash
Interest Asset Flow-to- Return on Revenue
Industry Coverage Coverage Leverage Debt Assets Profit Liquidity Stability Average
Oil & Gas 102.3 101.7 101.3 102.6 101.6 103.0 99.2 98.2 101.2
Technology 101.2 100.5 101.9 102.2 100.7 101.3 101.9 99.7 101.2
Metals & Mining 100.7 102.8 101.9 101.0 100.8 101.3 101.5 98.5 101.1
Healthcare 101.6 99.9 100.4 100.5 100.5 100.3 100.3 99.9 100.4
Construction & Engineering 101.3 100.5 100.0 100.1 102.5 100.5 99.6 98.4 100.4
Automotive 100.5 100.7 100.4 100.8 100.5 99.5 100.1 99.0 100.2
Manufacturing 100.4 99.3 100.1 99.9 100.4 99.8 100.1 100.4 100.0
Services 99.6 99.3 99.6 100.0 99.8 100.1 99.8 101.5 100.0
Transportation Services 99.2 100.5 100.5 99.5 99.3 100.0 99.1 101.6 100.0
Pharmaceuticals 98.6 100.4 100.2 99.4 98.3 98.8 102.8 100.8 99.9
Consumer Products 100.0 99.0 99.2 99.3 100.0 99.8 99.8 101.6 99.8
Chemicals 100.1 99.9 99.5 99.5 99.8 99.4 99.9 100.5 99.8
Leisure & Entertainment 99.5 99.6 99.4 99.5 100.6 99.6 99.3 100.4 99.7
Natural Products 99.0 100.4 100.5 99.6 99.0 98.9 99.8 100.3 99.7
Telecommunications 98.9 99.6 100.0 100.3 99.3 99.9 99.2 99.3 99.6
Energy & Environment 99.4 100.0 99.5 98.9 100.0 100.3 99.1 99.1 99.5
Packaging 99.1 99.3 99.2 99.2 99.4 99.2 99.6 100.3 99.4
Media 99.4 98.5 100.0 99.2 98.7 100.1 99.0 100.5 99.4
Retail & Distribution 99.5 99.4 98.3 99.4 99.6 99.0 100.1 99.9 99.4
Aerospace & Defense 99.5 98.9 98.1 99.2 99.2 99.2 99.6 100.1 99.2
How shall we interpret these results? Recall that these are conditioned on ratings. In other words, Baa rated issu-
ers in the Oil & Gas industry generally have stronger (sometimes substantially stronger) metrics than do Baa rated
issuers in the Aerospace & Defense industry.
One interpretation is that observing different levels of, for instance, coverage conditional on having a Baa rating is
evidence of different methods or standards in assigning ratings: we observe higher coverage ratios in Oil & Gas than
Aerospace & Defense because we hold the former to a higher standard than we do the latter.
The idea is that because one industry is “intrinsically riskier” than another, issuers in that industry must achieve
better credit ratios for a given rating. Consistent with previous research, we find evidence to suggest that this is true.
Using “revenue stability” as a proxy for “intrinsic risk,” the hypothesis is that we should observe better credit
ratios associated with lower stability within a rating category, in other words, we should observe a negative correlation
between the credit ratios and sales stability.
Exhibit 12 reports the correlation of the standardized values of each ratio to sales stability. As expected, we obtain
negative correlations for interest coverage (-0.56), asset coverage (-0.61), leverage (-0.39),4 cash flow-to-debt (-0.56),
return on assets (-0.63) and profit (-0.54). Liquidity is uncorrelated.
3. We normalize leverage to account for the fact that lesser values are preferable to greater values.
4. Recall that these are correlations of the standardized values, hence this negative correlation is to be expected.

Exhibit 12: Correlation of Median Baa
Ratios to Revenue Stability
Metric Correlation
Interest Coverage -0.56
Asset Coverage -0.61
Leverage -0.39
Cash Flow-to-Debt -0.56
Return on Assets -0.63
Profit -0.54
Liquidity -0.01
This, of course, remains purely suggestive, but it does indicate that industries with less stable revenues are
required to achieve stronger credit ratios in order to obtain the Baa rating.

Appendix A Detailed Distributions by Credit Metric
Source: Moody’s Ratings and Financial Database as of July 1, 2006
Exhibit A-1: Median Coverage Ratios

Aggregate 16.0 8.6 5.4 3.7 1.9 0.7 6.5 2.1
n= 22 102 220 186 333 76 344 595
Aerospace & Defense 8.1 4.3 4.3 3.4 0.3 5.8 3.5
6 4 3 9 1 10 13
Automotive 3.6 6.8 1.7 1.4 0.5 6.3 1.2

1 4 6 15 8 5 29
Chemicals 6.3 5.7 3.0 1.7 1.0 6.0 2.2

9 11 10 10 1 20 21
Construction & Engineering 6.3 8.6 5.6 3.7 0.7 8.0 5.0
1 8 10 3 1 9 14
Consumer Products 14.3 8.4 5.6 3.6 2.1 0.7 7.0 2.2
6 16 19 10 28 4 41 42
Energy & Environment 6.3 4.1 3.3 1.7 1.8 4.1 1.9
2 24 14 29 1 26 44
Healthcare 34.7 14.2 9.6 3.8 2.3 1.6 11.4 3.0

1 4 13 6 24 2 18 32
Leisure & Entertainment 6.4 4.3 2.7 1.3 0.9 5.0 1.8
2 9 15 30 3 11 48
Manufacturing 12.6 8.5 6.5 5.5 2.0 0.9 7.8 3.4

2 13 20 15 18 5 35 38
Media 8.7 3.9 1.6 1.4 0.7 5.0 1.2

6 15 14 20 8 21 42
Metals & Mining 18.0 15.9 7.2 7.1 3.1 -9.0 8.2 3.7
1 3 11 7 11 2 15 20
Natural Products 6.2 3.1 3.1 1.1 -0.5 3.7 1.3

3 7 4 11 2 10 17
Oil & Gas 21.7 18.6 11.3 4.9 5.9 2.6 13.7 5.6
2 6 12 14 18 2 20 34
Packaging 4.9 3.3 3.1 1.5 0.5 3.4 1.5

1 4 4 10 4 5 18
Pharmaceuticals 19.2 28.7 2.1 27.0 2.0 14.4 11.2

4 4 3 3 5 11 8
Retail & Distribution 8.2 7.9 4.3 3.9 2.1 1.1 5.3 2.4
3 7 21 25 36 13 31 74
Services 12.5 4.9 4.6 4.7 2.0 0.2 5.0 2.2

1 5 6 11 16 4 12 31
Technology 4.6 22.4 8.5 2.3 2.3 0.5 10.0 2.2

1 6 4 7 17 2 11 26
Telecommunications 4.8 2.9 3.3 0.8 0.2 3.5 0.8

5 14 3 13 7 19 23
Transportation Services 14.1 5.2 3.5 3.5 1.2 0.8 3.6 1.4
1 2 11 5 10 6 14 21

Exhibit A-2: Median Asset Coverage Ratios
Aggregate 3.7 2.4 2.3 2.0 1.3 1.0 2.4 1.4
n= 22 116 255 211 465 134 393 810
Aerospace & Defense 2.6 1.6 1.7 1.4 -0.1 2.4 1.4
6 4 4 12 1 10 17
Automotive 3.4 3.0 2.1 1.5 1.0 3.0 1.5

1 4 7 20 11 5 38
Chemicals 2.2 2.4 1.8 1.7 1.0 2.2 1.7

9 13 12 19 4 22 35
1 7 10 6 1 8 17
6 16 20 12 36 9 42 57
4 41 16 36 2 45 54
Healthcare 3.6 2.8 2.4 1.6 1.1 1.0 2.4 1.2

1 4 14 7 30 3 19 40
2 9 15 46 8 11 69
Manufacturing 4.6 2.2 1.9 2.1 1.0 0.8 2.1 1.1

2 13 21 16 33 12 36 61
Media 2.1 1.3 0.7 0.6 0.5 1.4 0.6

6 18 19 39 18 24 76
Metals & Mining 6.9 3.7 4.6 3.9 2.4 46.0 4.6 3.2
1 3 14 9 11 2 18 22
Natural Products 3.2 2.7 3.8 1.4 1.6 2.9 1.6

3 7 4 18 3 10 25
Oil & Gas 5.4 5.3 3.7 3.4 3.0 2.3 4.1 3.3
2 6 12 13 18 3 20 34
Packaging 1.9 1.9 1.6 1.3 0.8 1.9 1.2

1 4 5 12 6 5 23

4 4 3 3 6 11 9
3 8 21 27 42 18 32 87
Services 15.5 2.8 1.9 1.8 1.1 0.8 2.6 1.1

1 6 7 13 29 11 14 53
Technology 2.0 9.4 2.9 3.6 2.2 2.0 4.8 2.5

1 6 4 8 21 2 11 31

15 19 6 18 10 34 34
1 2 13 5 13 10 16 28

Exhibit A-3: Median Leverage Ratios
Aggregate 31.6% 41.7% 44.8% 49.8% 68.7% 92.2% 43.6% 66.8%
n= 22 116 257 212 468 134 395 814
Aerospace & Defense 52.6% 61.2% 55.7% 57.6% 132.2% 54.6% 57.4%
6 4 4 12 1 10 17
Automotive 48.1% 41.3% 59.7% 82.0% 83.9% 43.6% 80.2%

1 4 7 20 11 5 38
Chemicals 50.8% 49.3% 53.1% 78.0% 118.7% 50.3% 71.4%

9 13 12 19 4 22 35
Construction & Engineering 42.0% 45.3% 49.4% 63.5% 120.6% 45.2% 50.1%
1 8 10 6 1 9 17
Consumer Products 56.7% 55.4% 52.3% 51.2% 63.5% 107.8% 54.0% 63.5%
6 16 20 12 36 9 42 57
Energy & Environment 46.5% 49.4% 46.2% 61.5% 54.7% 49.4% 58.0%
4 42 16 37 2 46 55
Healthcare 38.2% 37.5% 41.4% 44.8% 60.7% 53.9% 39.9% 56.0%

1 4 14 7 31 3 19 41
Leisure & Entertainment 43.7% 50.2% 64.1% 82.5% 90.3% 50.2% 76.2%
2 9 15 46 8 11 69
Manufacturing 22.3% 41.5% 44.3% 44.0% 66.9% 88.3% 43.2% 66.0%

2 13 21 16 33 12 36 61
Media 30.8% 45.4% 58.7% 76.0% 101.6% 39.6% 76.5%

6 18 19 39 18 24 76
Metals & Mining 22.5% 38.6% 28.4% 42.4% 55.2% 43.6% 28.4% 51.6%
1 3 14 9 11 2 18 22
Natural Products 40.4% 41.2% 33.9% 70.9% 81.3% 41.2% 67.6%

3 7 4 18 3 10 25
Oil & Gas 25.2% 22.6% 34.2% 38.9% 44.7% 48.6% 28.5% 42.8%
2 6 12 14 18 3 20 35
Packaging 53.5% 51.9% 66.7% 80.1% 116.4% 53.5% 80.7%

1 4 5 12 6 5 23
Pharmaceuticals 28.3% 33.2% 43.0% 23.2% 56.0% 33.3% 44.9%

4 4 3 3 6 11 9
Retail & Distribution 45.5% 46.5% 60.0% 56.4% 70.1% 81.9% 53.7% 67.8%
3 8 21 27 42 18 32 87
Services 21.7% 41.2% 49.0% 45.6% 71.5% 115.3% 42.8% 68.7%

1 6 7 13 29 11 14 53
Technology 53.6% 16.0% 28.5% 33.8% 45.2% 66.0% 25.1% 42.3%

1 6 4 8 22 2 11 32
Telecommunications 54.8% 44.8% 67.6% 74.4% 116.1% 51.3% 84.4%

15 19 6 18 10 34 34
Transportation Services 32.8% 41.3% 41.1% 58.2% 66.4% 93.3% 40.6% 70.1%
1 2 13 5 13 10 16 28

Exhibit A-4: Median Cash Flow-to-Debt Ratios
Aggregate 52.4% 32.6% 25.8% 21.6% 12.1% 6.4% 28.4% 12.7%
n= 22 116 257 212 468 134 395 814
Aerospace & Defense 32.7% 18.1% 19.1% 14.8% -9.1% 24.0% 14.5%
6 4 4 12 1 10 17
Automotive 31.0% 40.2% 13.8% 10.1% 4.8% 39.3% 8.6%

1 4 7 20 11 5 38
Chemicals 26.8% 22.1% 18.6% 9.4% 6.6% 26.7% 10.1%

9 13 12 19 4 22 35
1 8 10 6 1 9 17
6 16 20 12 36 9 42 57
4 42 16 37 2 46 55
Healthcare 56.7% 45.5% 35.5% 27.4% 17.4% 30.0% 40.7% 19.7%

1 4 14 7 31 3 19 41
2 9 15 46 8 11 69
Manufacturing 63.1% 33.2% 27.5% 24.0% 10.8% 6.7% 30.6% 12.8%

2 13 21 16 33 12 36 61
Media 36.6% 17.9% 12.7% 7.8% 6.2% 21.6% 7.8%

6 18 19 39 18 24 76
Metals & Mining 104.1% 50.8% 42.5% 40.8% 21.6% -25.5% 46.5% 24.7%
1 3 14 9 11 2 18 22

3 7 4 18 3 10 25
Oil & Gas 80.5% 109.2% 64.9% 35.3% 36.2% 16.9% 67.2% 35.9%
2 6 12 14 18 3 20 35
Packaging 20.0% 18.5% 15.7% 10.7% 4.2% 18.8% 9.1%

1 4 5 12 6 5 23

4 4 3 3 6 11 9
3 8 21 27 42 18 32 87
Services 83.8% 38.3% 28.4% 26.7% 12.5% 7.2% 37.0% 13.3%

1 6 7 13 29 11 14 53
Technology 28.7% 155.0% 59.2% 23.1% 21.9% 14.5% 97.3% 21.4%

1 6 4 8 22 2 11 32

15 19 6 18 10 34 34
1 2 13 5 13 10 16 28

Exhibit A-5: Median Asset Returns
Aggregate 11.6% 7.5% 5.3% 4.4% 1.7% -2.1% 6.3% 1.9%
n= 22 116 257 212 466 133 395 811
6 4 4 12 1 10 17
Automotive 8.5% 6.8% 0.5% 1.0% -4.9% 7.5% 0.3%

1 4 7 20 11 5 38
Chemicals 6.3% 5.1% 4.3% 1.9% 0.8% 6.1% 2.2%

9 13 12 19 4 22 35
Construction & Engineering 5.0% 11.1% 8.8% 2.3% -3.0% 10.7% 6.4%
1 8 10 6 1 9 17
Consumer Products 14.5% 10.0% 5.5% 3.9% 2.4% -3.5% 8.0% 2.2%
6 16 20 12 36 9 42 57
Energy & Environment 6.4% 5.6% 4.0% 2.6% -3.8% 5.6% 2.8%
4 42 16 37 2 46 55
Healthcare 16.5% 11.7% 6.6% 4.9% 2.6% 0.6% 8.2% 2.7%

1 4 14 7 31 3 19 41
2 9 15 45 7 11 67
Manufacturing 8.6% 8.6% 6.5% 4.8% 2.3% -0.3% 7.2% 3.2%

2 13 21 16 33 12 36 61
Media 5.4% 2.7% 1.7% 0.1% -4.3% 3.7% 0.0%

6 18 19 39 18 24 76
Metals & Mining 18.8% 16.4% 7.4% 10.9% 0.6% -9.8% 7.7% 5.5%
1 3 14 9 11 2 18 22
Natural Products 8.6% 3.4% 3.9% 0.4% -6.5% 4.1% 0.1%

3 7 4 18 3 10 25
Oil & Gas 11.9% 13.7% 9.1% 6.5% 6.8% 3.7% 10.4% 6.7%
2 6 12 14 18 3 20 35
Packaging 5.5% 4.4% 3.7% 0.0% -3.6% 5.1% -0.3%

1 4 5 12 6 5 23
Pharmaceuticals 11.8% 11.5% 2.0% 8.7% -2.0% 10.2% 6.5%

4 4 3 3 5 11 8
Retail & Distribution 8.0% 6.7% 4.7% 3.7% 2.4% -0.1% 5.9% 2.6%
3 8 21 27 42 18 32 87
Services 3.5% 5.7% 5.3% 4.7% 1.9% -3.1% 5.3% 1.6%

1 6 7 13 29 11 14 53
Technology 6.7% 10.7% 7.2% 0.7% -0.1% -3.2% 9.9% 0.0%

1 6 4 8 22 2 11 32
Telecommunications 5.0% 4.2% 3.7% -0.6% -3.8% 4.8% -1.2%

15 19 6 18 10 34 34
Transportation Services 9.3% 5.6% 4.1% 5.2% 1.3% -0.5% 4.2% 1.0%
1 2 13 5 13 10 16 28

Exhibit A-6: Median Profit Margins
Aggregate 11.8% 9.0% 6.7% 5.0% 2.0% -2.6% 7.8% 2.1%
n= 22 116 257 212 467 133 395 812
6 4 4 12 1 10 17
Automotive 7.1% 5.5% 0.4% 0.8% -6.3% 5.5% 0.2%

1 4 7 20 11 5 38
Chemicals 7.8% 5.4% 5.2% 1.4% 0.7% 7.0% 1.7%

9 13 12 19 4 22 35
Construction & Engineering 1.7% 9.0% 6.6% 1.4% -2.2% 8.9% 6.0%
1 8 10 6 1 9 17
Consumer Products 12.6% 9.0% 6.6% 4.1% 2.6% -3.9% 8.3% 2.4%
6 16 20 12 36 9 42 57
Energy & Environment 9.2% 8.4% 10.1% 3.3% -8.2% 8.4% 4.3%
4 42 16 37 2 46 55
Healthcare 15.2% 14.2% 8.3% 6.3% 2.7% 0.6% 9.6% 3.8%

1 4 14 7 31 3 19 41
Leisure & Entertainment 14.8% 5.8% 9.2% 2.0% -3.9% 6.8% 3.0%
2 9 15 45 7 11 67
Manufacturing 10.2% 8.2% 6.4% 3.8% 2.1% -0.6% 7.7% 2.9%

2 13 21 16 33 12 36 61
Media 9.4% 7.6% 2.6% 0.3% -9.4% 7.8% 0.0%

6 18 19 39 18 24 76
Metals & Mining 27.1% 10.3% 11.6% 9.2% 0.7% -17.2% 11.6% 4.3%
1 3 14 9 11 2 18 22
Natural Products 4.7% 3.4% 3.5% 0.1% -5.5% 3.5% 0.1%

3 7 4 18 3 10 25
Oil & Gas 8.3% 29.7% 17.5% 17.4% 20.3% 15.4% 17.5% 19.1%
2 6 12 14 18 3 20 35
Packaging 4.6% 4.4% 3.6% -0.1% -3.1% 4.6% -0.4%

1 4 5 12 6 5 23
Pharmaceuticals 20.0% 17.0% 3.3% 13.9% -0.1% 17.4% 8.4%

4 4 3 3 6 11 9
Retail & Distribution 3.5% 5.4% 3.9% 2.6% 1.7% -0.2% 4.4% 1.4%
3 8 21 27 42 18 32 87
Services 10.8% 6.7% 7.7% 5.0% 2.9% -3.1% 7.3% 2.7%

1 6 7 13 29 11 14 53
Technology 9.1% 10.5% 11.6% 0.5% -0.1% -4.2% 9.1% -0.1%

1 6 4 8 22 2 11 32
Telecommunications 11.0% 6.7% 7.4% -2.6% -9.8% 10.2% -1.9%

15 19 6 18 10 34 34
Transportation Services 8.8% 16.3% 7.1% 3.3% 2.5% -0.8% 8.7% 1.1%
1 2 13 5 13 10 16 28

Exhibit A-7: Median Liquidity Ratios
Aggregate 7.8% 4.7% 4.0% 4.3% 3.9% 3.3% 4.6% 3.9%
n= 22 116 257 212 468 134 395 814
Aerospace & Defense 7.0% 4.7% 2.8% 11.7% 0.3% 4.9% 7.2%
6 4 4 12 1 10 17
Automotive 25.7% 7.2% 6.4% 3.6% 2.3% 11.3% 3.2%

1 4 7 20 11 5 38
Chemicals 1.8% 6.0% 2.6% 3.1% 2.9% 5.1% 2.7%

9 13 12 19 4 22 35
1 8 10 6 1 9 17
6 16 20 12 36 9 42 57
4 42 16 37 2 46 55
Healthcare 5.7% 14.1% 8.2% 6.2% 4.4% 4.6% 9.9% 4.6%

1 4 14 7 31 3 19 41
2 9 15 46 8 11 69
Manufacturing 3.7% 5.9% 7.1% 5.2% 2.5% 3.6% 6.6% 4.2%

2 13 21 16 33 12 36 61
Media 2.2% 1.2% 0.7% 2.0% 3.7% 1.3% 1.8%

6 18 19 39 18 24 76
Metals & Mining 8.5% 3.9% 14.3% 12.6% 4.8% 21.8% 13.3% 9.7%
1 3 14 9 11 2 18 22

3 7 4 18 3 10 25
Oil & Gas 9.0% 5.0% 2.1% 1.1% 1.1% 1.0% 3.4% 1.0%
2 6 12 14 18 3 20 35
Packaging 2.0% 4.5% 1.3% 1.8% 1.0% 3.2% 1.4%

1 4 5 12 6 5 23

4 4 3 3 6 11 9
3 8 21 27 42 18 32 87
Services 5.7% 9.3% 5.5% 5.7% 4.2% 3.2% 6.2% 4.2%

1 6 7 13 29 11 14 53
Technology 3.9% 28.3% 16.7% 16.8% 19.8% 19.1% 20.0% 19.4%

1 6 4 8 22 2 11 32

15 19 6 18 10 34 34
1 2 13 5 13 10 16 28

Exhibit A-8: Median Revenue Stability
Aggregate 7.2 7.3 6.1 5.2 6.1 7.3 6.6 5.9
n= 22 104 222 186 322 77 348 585
Aerospace & Defense 9.0 6.7 3.1 3.8 2.8 7.7 3.3
6 4 3 9 1 10 13
Automotive 4.0 4.2 8.6 8.2 14.1 4.1 9.5

1 4 6 15 9 5 30
Chemicals 6.6 7.6 7.1 6.2 1.5 6.9 6.1

9 11 10 12 1 20 23
1 7 10 3 1 8 14
6 16 20 10 24 5 42 39
2 24 14 26 1 26 41
Healthcare 8.2 7.6 6.2 6.5 4.8 19.5 6.6 5.5

1 4 13 6 24 2 18 32
2 9 15 30 3 11 48
Manufacturing 7.5 9.3 7.4 5.3 4.7 5.4 7.4 5.1

2 13 20 15 20 5 35 40
Media 9.1 7.7 4.2 7.1 4.6 9.0 6.5

6 15 14 20 9 21 43
Metals & Mining 2.5 2.5 2.9 2.9 4.6 6.6 2.7 4.0
1 3 12 6 8 1 16 15
Natural Products 7.3 7.1 6.1 7.1 3.2 7.2 6.4

3 7 4 10 2 10 16
Oil & Gas 3.5 2.2 2.3 3.1 2.4 3.4 2.3 2.4
2 6 12 14 17 2 20 33
Packaging 8.0 7.1 10.2 9.4 9.9 8.0 9.6

1 4 4 9 4 5 17

4 4 3 3 5 11 8
3 7 21 25 35 14 31 74
Services 11.0 6.7 9.9 5.9 5.4 19.5 8.2 6.1

1 5 6 10 15 3 12 28
Technology 8.9 4.3 5.7 7.0 6.5 4.9 4.4 6.2

1 6 4 7 17 2 11 26

7 15 5 13 6 22 24
1 2 11 5 10 6 14 21

Appendix B Detailed Distributions by Industry
Exhibit B-1: Aggregate

Interest Asset Cash Flow-to- Return on Revenue
Coverage Coverage Leverage Debt Assets Profit Liquidity Stability
Aaa-Aa 16.0 3.7 31.6% 52.4% 11.6% 11.8% 7.8% 7.2
n= 22 22 22 22 22 22 22 22
A 8.6 2.4 41.7% 32.6% 7.5% 9.0% 4.7% 7.3

102 116 116 116 116 116 116 104
Baa 5.4 2.3 44.8% 25.8% 5.3% 6.7% 4.0% 6.1

220 255 257 257 257 257 257 222
Ba 3.7 2.0 49.8% 21.6% 4.4% 5.0% 4.3% 5.2

186 211 212 212 212 212 212 186
B 1.9 1.3 68.7% 12.1% 1.7% 2.0% 3.9% 6.1

333 465 468 468 466 467 468 322
Caa-C 0.7 1.0 92.2% 6.4% -2.1% -2.6% 3.3% 7.3

76 134 134 134 133 133 134 77
Exhibit B-2: Aerospace & Defense

Aaa-Aa
n=
A 8.1 2.6 52.6% 32.7% 6.8% 6.0% 7.0% 9.0

6 6 6 6 6 6 6 6
Baa 4.3 1.6 61.2% 18.1% 3.9% 4.5% 4.7% 6.7

4 4 4 4 4 4 4 4
Ba 4.3 1.7 55.7% 19.1% 4.7% 4.5% 2.8% 3.1

3 4 4 4 4 4 4 3
B 3.4 1.4 57.6% 14.8% 3.6% 4.2% 11.7% 3.8

9 12 12 12 12 12 12 9
Caa-C 0.3 -0.1 132.2% -9.1% -14.1% -19.9% 0.3% 2.8

1 1 1 1 1 1 1 1

Exhibit B-3: Automotive
Aaa-Aa
n=
A 3.6 3.4 48.1% 31.0% 8.5% 7.1% 25.7% 4.0

1 1 1 1 1 1 1 1
Baa 6.8 3.0 41.3% 40.2% 6.8% 5.5% 7.2% 4.2

4 4 4 4 4 4 4 4
Ba 1.7 2.1 59.7% 13.8% 0.5% 0.4% 6.4% 8.6

6 7 7 7 7 7 7 6
B 1.4 1.5 82.0% 10.1% 1.0% 0.8% 3.6% 8.2

15 20 20 20 20 20 20 15
Caa-C 0.5 1.0 83.9% 4.8% -4.9% -6.3% 2.3% 14.1

8 11 11 11 11 11 11 9
Exhibit B-4: Chemicals

Aaa-Aa
n=
A 6.3 2.2 50.8% 26.8% 6.3% 7.8% 1.8% 6.6

9 9 9 9 9 9 9 9
Baa 5.7 2.4 49.3% 22.1% 5.1% 5.4% 6.0% 7.6

11 13 13 13 13 13 13 11
Ba 3.0 1.8 53.1% 18.6% 4.3% 5.2% 2.6% 7.1

10 12 12 12 12 12 12 10
B 1.7 1.7 78.0% 9.4% 1.9% 1.4% 3.1% 6.2

10 19 19 19 19 19 19 12
Caa-C 1.0 1.0 118.7% 6.6% 0.8% 0.7% 2.9% 1.5

1 4 4 4 4 4 4 1

Exhibit B-5: Construction & Engineering
Aaa-Aa
n=
A 6.3 4.9 42.0% 27.7% 5.0% 1.7% 16.1% 5.6

1 1 1 1 1 1 1 1
Baa 8.6 2.9 45.3% 30.0% 11.1% 9.0% 4.4% 2.8

8 7 8 8 8 8 8 7
Ba 5.6 2.5 49.4% 26.7% 8.8% 6.6% 3.4% 2.7

10 10 10 10 10 10 10 10
B 3.7 2.2 63.5% 15.4% 2.3% 1.4% 16.1% 5.1

3 6 6 6 6 6 6 3
Caa-C 0.7 1.0 120.6% 2.4% -3.0% -2.2% 0.0% 5.5

1 1 1 1 1 1 1 1
Exhibit B-6: Consumer Products

Aaa-Aa 14.3 2.0 56.7% 31.6% 14.5% 12.6% 11.6% 12.0
n= 6 6 6 6 6 6 6 6
A 8.4 1.8 55.4% 24.7% 10.0% 9.0% 4.7% 12.7

16 16 16 16 16 16 16 16
Baa 5.6 1.7 52.3% 19.4% 5.5% 6.6% 5.7% 10.2

19 20 20 20 20 20 20 20
Ba 3.6 1.8 51.2% 17.4% 3.9% 4.1% 5.1% 8.2

10 12 12 12 12 12 12 10
B 2.1 1.0 63.5% 13.7% 2.4% 2.6% 3.1% 8.4

28 36 36 36 36 36 36 24
Caa-C 0.7 0.6 107.8% 1.7% -3.5% -3.9% 1.1% 7.0

4 9 9 9 9 9 9 5

Exhibit B-7: Energy & Environment
Aaa-Aa
n=
A 6.3 2.5 46.5% 31.1% 6.4% 9.2% 6.7% 4.4

2 4 4 4 4 4 4 2
Baa 4.1 2.5 49.4% 14.3% 5.6% 8.4% 1.7% 4.3

24 41 42 42 42 42 42 24
Ba 3.3 2.3 46.2% 18.2% 4.0% 10.1% 2.5% 4.3

14 16 16 16 16 16 16 14
B 1.7 1.7 61.5% 11.1% 2.6% 3.3% 4.6% 4.8

29 36 37 37 37 37 37 26
Caa-C 1.8 1.6 54.7% 15.6% -3.8% -8.2% 1.0% 1.1

1 2 2 2 2 2 2 1
Exhibit B-8: Healthcare

Aaa-Aa 34.7 3.6 38.2% 56.7% 16.5% 15.2% 5.7% 8.2
n= 1 1 1 1 1 1 1 1
A 14.2 2.8 37.5% 45.5% 11.7% 14.2% 14.1% 7.6

4 4 4 4 4 4 4 4
Baa 9.6 2.4 41.4% 35.5% 6.6% 8.3% 8.2% 6.2

13 14 14 14 14 14 14 13
Ba 3.8 1.6 44.8% 27.4% 4.9% 6.3% 6.2% 6.5

6 7 7 7 7 7 7 6
B 2.3 1.1 60.7% 17.4% 2.6% 2.7% 4.4% 4.8

24 30 31 31 31 31 31 24
Caa-C 1.6 1.0 53.9% 30.0% 0.6% 0.6% 4.6% 19.5

2 3 3 3 3 3 3 2

Exhibit B-9: Leisure & Entertainment
Aaa-Aa
n=
A 6.4 2.5 43.7% 26.8% 6.4% 14.8% 7.3% 4.9

2 2 2 2 2 2 2 2
Baa 4.3 2.2 50.2% 22.6% 6.9% 5.8% 3.1% 7.4

9 9 9 9 9 9 9 9
Ba 2.7 1.7 64.1% 14.9% 4.8% 9.2% 3.6% 6.1

15 15 15 15 15 15 15 15
B 1.3 1.1 82.5% 9.3% 1.5% 2.0% 5.4% 7.1

30 46 46 46 45 45 46 30
Caa-C 0.9 0.9 90.3% 6.2% 0.2% -3.9% 4.7% 12.8

3 8 8 8 7 7 8 3
Exhibit B-10: Manufacturing

Aaa-Aa 12.6 4.6 22.3% 63.1% 8.6% 10.2% 3.7% 7.5
n= 2 2 2 2 2 2 2 2
A 8.5 2.2 41.5% 33.2% 8.6% 8.2% 5.9% 9.3

13 13 13 13 13 13 13 13
Baa 6.5 1.9 44.3% 27.5% 6.5% 6.4% 7.1% 7.4

20 21 21 21 21 21 21 20
Ba 5.5 2.1 44.0% 24.0% 4.8% 3.8% 5.2% 5.3

15 16 16 16 16 16 16 15
B 2.0 1.0 66.9% 10.8% 2.3% 2.1% 2.5% 4.7

18 33 33 33 33 33 33 20
Caa-C 0.9 0.8 88.3% 6.7% -0.3% -0.6% 3.6% 5.4

5 12 12 12 12 12 12 5

Exhibit B-11: Media
Aaa-Aa
n=
A 8.7 2.1 30.8% 36.6% 5.4% 9.4% 2.2% 9.1

6 6 6 6 6 6 6 6
Baa 3.9 1.3 45.4% 17.9% 2.7% 7.6% 1.2% 7.7

15 18 18 18 18 18 18 15
Ba 1.6 0.7 58.7% 12.7% 1.7% 2.6% 0.7% 4.2

14 19 19 19 19 19 19 14
B 1.4 0.6 76.0% 7.8% 0.1% 0.3% 2.0% 7.1

20 39 39 39 39 39 39 20
Caa-C 0.7 0.5 101.6% 6.2% -4.3% -9.4% 3.7% 4.6

8 18 18 18 18 18 18 9
Exhibit B-12: Metals & Mining

Aaa-Aa 18.0 6.9 22.5% 104.1% 18.8% 27.1% 8.5% 2.5
n= 1 1 1 1 1 1 1 1
A 15.9 3.7 38.6% 50.8% 16.4% 10.3% 3.9% 2.5

3 3 3 3 3 3 3 3
Baa 7.2 4.6 28.4% 42.5% 7.4% 11.6% 14.3% 2.9

11 14 14 14 14 14 14 12
Ba 7.1 3.9 42.4% 40.8% 10.9% 9.2% 12.6% 2.9

7 9 9 9 9 9 9 6
B 3.1 2.4 55.2% 21.6% 0.6% 0.7% 4.8% 4.6

11 11 11 11 11 11 11 8
Caa-C -9.0 46.0 43.6% -25.5% -9.8% -17.2% 21.8% 6.6

2 2 2 2 2 2 2 1

Exhibit B-13: Natural Products
Aaa-Aa
n=
A 6.2 3.2 40.4% 27.0% 8.6% 4.7% 2.7% 7.3

3 3 3 3 3 3 3 3
Baa 3.1 2.7 41.2% 23.1% 3.4% 3.4% 5.5% 7.1

7 7 7 7 7 7 7 7
Ba 3.1 3.8 33.9% 22.3% 3.9% 3.5% 5.1% 6.1

4 4 4 4 4 4 4 4
B 1.1 1.4 70.9% 9.7% 0.4% 0.1% 2.2% 7.1

11 18 18 18 18 18 18 10
Caa-C -0.5 1.6 81.3% 2.3% -6.5% -5.5% 0.8% 3.2

2 3 3 3 3 3 3 2
Exhibit B-14: Oil & Gas

Aaa-Aa 21.7 5.4 25.2% 80.5% 11.9% 8.3% 9.0% 3.5
n= 2 2 2 2 2 2 2 2
A 18.6 5.3 22.6% 109.2% 13.7% 29.7% 5.0% 2.2

6 6 6 6 6 6 6 6
Baa 11.3 3.7 34.2% 64.9% 9.1% 17.5% 2.1% 2.3

12 12 12 12 12 12 12 12
Ba 4.9 3.4 38.9% 35.3% 6.5% 17.4% 1.1% 3.1

14 13 14 14 14 14 14 14
B 5.9 3.0 44.7% 36.2% 6.8% 20.3% 1.1% 2.4

18 18 18 18 18 18 18 17
Caa-C 2.6 2.3 48.6% 16.9% 3.7% 15.4% 1.0% 3.4

2 3 3 3 3 3 3 2

Exhibit B-15: Packaging
Aaa-Aa
n=
A 4.9 1.9 53.5% 20.0% 5.5% 4.6% 2.0% 8.0

1 1 1 1 1 1 1 1
Baa 3.3 1.9 51.9% 18.5% 4.4% 4.4% 4.5% 7.1

4 4 4 4 4 4 4 4
Ba 3.1 1.6 66.7% 15.7% 3.7% 3.6% 1.3% 10.2

4 5 5 5 5 5 5 4
B 1.5 1.3 80.1% 10.7% 0.0% -0.1% 1.8% 9.4

10 12 12 12 12 12 12 9
Caa-C 0.5 0.8 116.4% 4.2% -3.6% -3.1% 1.0% 9.9

4 6 6 6 6 6 6 4
Exhibit B-16: Pharmaceuticals

Aaa-Aa 19.2 3.5 28.3% 41.3% 11.8% 20.0% 22.9% 5.0
n= 4 4 4 4 4 4 4 4
A 28.7 3.1 33.2% 56.1% 11.5% 17.0% 18.5% 3.9

4 4 4 4 4 4 4 4
Baa 2.1 2.8 43.0% 20.4% 2.0% 3.3% 21.3% 8.4

3 3 3 3 3 3 3 3
Ba 27.0 2.8 23.2% 59.4% 8.7% 13.9% 18.7% 5.7

3 3 3 3 3 3 3 3
B 2.0 1.3 56.0% 11.8% -2.0% -0.1% 9.2% 5.9

5 6 6 6 5 6 6 5
Caa-C

Exhibit B-17: Retail & Distribution
Aaa-Aa 8.2 2.8 45.5% 29.7% 8.0% 3.5% 3.7% 5.9
n= 3 3 3 3 3 3 3 3
A 7.9 2.7 46.5% 34.0% 6.7% 5.4% 2.7% 6.2

7 8 8 8 8 8 8 7
Baa 4.3 2.0 60.0% 21.6% 4.7% 3.9% 7.1% 6.2

21 21 21 21 21 21 21 21
Ba 3.9 2.0 56.4% 21.0% 3.7% 2.6% 5.9% 5.4

25 27 27 27 27 27 27 25
B 2.1 1.5 70.1% 12.7% 2.4% 1.7% 2.2% 9.3

36 42 42 42 42 42 42 35
Caa-C 1.1 1.1 81.9% 8.1% -0.1% -0.2% 3.8% 8.4

13 18 18 18 18 18 18 14
Exhibit B-18: Services

Aaa-Aa 12.5 15.5 21.7% 83.8% 3.5% 10.8% 5.7% 11.0
n= 1 1 1 1 1 1 1 1
A 4.9 2.8 41.2% 38.3% 5.7% 6.7% 9.3% 6.7

5 6 6 6 6 6 6 5
Baa 4.6 1.9 49.0% 28.4% 5.3% 7.7% 5.5% 9.9

6 7 7 7 7 7 7 6
Ba 4.7 1.8 45.6% 26.7% 4.7% 5.0% 5.7% 5.9

11 13 13 13 13 13 13 10
B 2.0 1.1 71.5% 12.5% 1.9% 2.9% 4.2% 5.4

16 29 29 29 29 29 29 15
Caa-C 0.2 0.8 115.3% 7.2% -3.1% -3.1% 3.2% 19.5

4 11 11 11 11 11 11 3

Exhibit B-19: Technology
Aaa-Aa 4.6 2.0 53.6% 28.7% 6.7% 9.1% 3.9% 8.9
n= 1 1 1 1 1 1 1 1
A 22.4 9.4 16.0% 155.0% 10.7% 10.5% 28.3% 4.3

6 6 6 6 6 6 6 6
Baa 8.5 2.9 28.5% 59.2% 7.2% 11.6% 16.7% 5.7

4 4 4 4 4 4 4 4
Ba 2.3 3.6 33.8% 23.1% 0.7% 0.5% 16.8% 7.0

7 8 8 8 8 8 8 7
B 2.3 2.2 45.2% 21.9% -0.1% -0.1% 19.8% 6.5

17 21 22 22 22 22 22 17
Caa-C 0.5 2.0 66.0% 14.5% -3.2% -4.2% 19.1% 4.9

2 2 2 2 2 2 2 2
Exhibit B-20: Telecommunications

Aaa-Aa
n=
A 4.8 2.3 54.8% 28.0% 5.0% 11.0% 1.6% 17.6

5 15 15 15 15 15 15 7
Baa 2.9 2.2 44.8% 33.3% 4.2% 6.7% 2.4% 4.9

14 19 19 19 19 19 19 15
Ba 3.3 1.7 67.6% 21.3% 3.7% 7.4% 4.9% 3.7

3 6 6 6 6 6 6 5
B 0.8 1.1 74.4% 9.8% -0.6% -2.6% 4.5% 4.7

13 18 18 18 18 18 18 13
Caa-C 0.2 0.7 116.1% 8.2% -3.8% -9.8% 9.1% 6.1

7 10 10 10 10 10 10 6

Exhibit B-21: Transportation Services
Aaa-Aa 14.1 3.8 32.8% 54.9% 9.3% 8.8% 7.4% 7.2
n= 1 1 1 1 1 1 1 1
A 5.2 2.8 41.3% 26.1% 5.6% 16.3% 5.7% 6.2

2 2 2 2 2 2 2 2
Baa 3.5 2.8 41.1% 22.6% 4.1% 7.1% 1.9% 10.2

11 13 13 13 13 13 13 11
Ba 3.5 1.6 58.2% 22.1% 5.2% 3.3% 4.3% 2.5

5 5 5 5 5 5 5 5
B 1.2 1.8 66.4% 13.4% 1.3% 2.5% 2.7% 7.0

10 13 13 13 13 13 13 10
Caa-C 0.8 1.3 93.3% 8.4% -0.5% -0.8% 8.0% 7.7

6 10 10 10 10 10 10 6

Appendix C Detailed Distributions by Broad Rating Category
Exhibit C-1: Rating Aaa - Aa

Interest Asset Cash Flow- Return on Revenue
Coverage Coverage Leverage to-Debt Assets Profit Liquidity Stability
Aggregate 16.0 3.7 31.6% 52.4% 11.6% 11.8% 7.8% 7.2
n= 22 22 22 22 22 22 22 22
Aerospace & Defense
Automotive
Chemicals
Consumer Products 14.3 2.0 56.7% 31.6% 14.5% 12.6% 11.6% 12.0
6 6 6 6 6 6 6 6
Healthcare 34.7 3.6 38.2% 56.7% 16.5% 15.2% 5.7% 8.2

1 1 1 1 1 1 1 1
Manufacturing 12.6 4.6 22.3% 63.1% 8.6% 10.2% 3.7% 7.5

2 2 2 2 2 2 2 2
Media
Metals & Mining 18.0 6.9 22.5% 104.1% 18.8% 27.1% 8.5% 2.5
1 1 1 1 1 1 1 1
Natural Products
Oil & Gas 21.7 5.4 25.2% 80.5% 11.9% 8.3% 9.0% 3.5
2 2 2 2 2 2 2 2
Packaging
Pharmaceuticals 19.2 3.5 28.3% 41.3% 11.8% 20.0% 22.9% 5.0

4 4 4 4 4 4 4 4
Retail & Distribution 8.2 2.8 45.5% 29.7% 8.0% 3.5% 3.7% 5.9
3 3 3 3 3 3 3 3
Services 12.5 15.5 21.7% 83.8% 3.5% 10.8% 5.7% 11.0

1 1 1 1 1 1 1 1
Technology 4.6 2.0 53.6% 28.7% 6.7% 9.1% 3.9% 8.9

1 1 1 1 1 1 1 1
Telecommunications
Transportation Services 14.1 3.8 32.8% 54.9% 9.3% 8.8% 7.4% 7.2
1 1 1 1 1 1 1 1

Exhibit C-2: Rating A
Aggregate 8.6 2.4 41.7% 32.6% 7.5% 9.0% 4.7% 7.3
n= 102 116 116 116 116 116 116 104
Aerospace & Defense 8.1 2.6 52.6% 32.7% 6.8% 6.0% 7.0% 9.0
6 6 6 6 6 6 6 6
Automotive 3.6 3.4 48.1% 31.0% 8.5% 7.1% 25.7% 4.0

1 1 1 1 1 1 1 1
Chemicals 6.3 2.2 50.8% 26.8% 6.3% 7.8% 1.8% 6.6

9 9 9 9 9 9 9 9
Construction & Engineering 6.3 4.9 42.0% 27.7% 5.0% 1.7% 16.1% 5.6
1 1 1 1 1 1 1 1
16 16 16 16 16 16 16 16
Energy & Environment 6.3 2.5 46.5% 31.1% 6.4% 9.2% 6.7% 4.4
2 4 4 4 4 4 4 2
Healthcare 14.2 2.8 37.5% 45.5% 11.7% 14.2% 14.1% 7.6

4 4 4 4 4 4 4 4
Leisure & Entertainment 6.4 2.5 43.7% 26.8% 6.4% 14.8% 7.3% 4.9
2 2 2 2 2 2 2 2
Manufacturing 8.5 2.2 41.5% 33.2% 8.6% 8.2% 5.9% 9.3

13 13 13 13 13 13 13 13
Media 8.7 2.1 30.8% 36.6% 5.4% 9.4% 2.2% 9.1

6 6 6 6 6 6 6 6
Metals & Mining 15.9 3.7 38.6% 50.8% 16.4% 10.3% 3.9% 2.5
3 3 3 3 3 3 3 3
Natural Products 6.2 3.2 40.4% 27.0% 8.6% 4.7% 2.7% 7.3
3 3 3 3 3 3 3 3
Oil & Gas 18.6 5.3 22.6% 109.2% 13.7% 29.7% 5.0% 2.2
6 6 6 6 6 6 6 6
Packaging 4.9 1.9 53.5% 20.0% 5.5% 4.6% 2.0% 8.0

1 1 1 1 1 1 1 1

4 4 4 4 4 4 4 4
7 8 8 8 8 8 8 7
Services 4.9 2.8 41.2% 38.3% 5.7% 6.7% 9.3% 6.7

5 6 6 6 6 6 6 5
Technology 22.4 9.4 16.0% 155.0% 10.7% 10.5% 28.3% 4.3

6 6 6 6 6 6 6 6
Telecommunications 4.8 2.3 54.8% 28.0% 5.0% 11.0% 1.6% 17.6

5 15 15 15 15 15 15 7
2 2 2 2 2 2 2 2

Exhibit C-3: Rating Baa
Aggregate 5.4 2.3 44.8% 25.8% 5.3% 6.7% 4.0% 6.1
n= 220 255 257 257 257 257 257 222
4 4 4 4 4 4 4 4
Automotive 6.8 3.0 41.3% 40.2% 6.8% 5.5% 7.2% 4.2

4 4 4 4 4 4 4 4
Chemicals 5.7 2.4 49.3% 22.1% 5.1% 5.4% 6.0% 7.6

11 13 13 13 13 13 13 11
8 7 8 8 8 8 8 7
19 20 20 20 20 20 20 20
24 41 42 42 42 42 42 24
Healthcare 9.6 2.4 41.4% 35.5% 6.6% 8.3% 8.2% 6.2

13 14 14 14 14 14 14 13
9 9 9 9 9 9 9 9
Manufacturing 6.5 1.9 44.3% 27.5% 6.5% 6.4% 7.1% 7.4

20 21 21 21 21 21 21 20
Media 3.9 1.3 45.4% 17.9% 2.7% 7.6% 1.2% 7.7

15 18 18 18 18 18 18 15
Metals & Mining 7.2 4.6 28.4% 42.5% 7.4% 11.6% 14.3% 2.9
11 14 14 14 14 14 14 12
7 7 7 7 7 7 7 7
Oil & Gas 11.3 3.7 34.2% 64.9% 9.1% 17.5% 2.1% 2.3
12 12 12 12 12 12 12 12
Packaging 3.3 1.9 51.9% 18.5% 4.4% 4.4% 4.5% 7.1

4 4 4 4 4 4 4 4

3 3 3 3 3 3 3 3
21 21 21 21 21 21 21 21
Services 4.6 1.9 49.0% 28.4% 5.3% 7.7% 5.5% 9.9

6 7 7 7 7 7 7 6
Technology 8.5 2.9 28.5% 59.2% 7.2% 11.6% 16.7% 5.7

4 4 4 4 4 4 4 4

14 19 19 19 19 19 19 15
11 13 13 13 13 13 13 11

Exhibit C-4: Rating Ba
Aggregate 3.7 2.0 49.8% 21.6% 4.4% 5.0% 4.3% 5.2
n= 186 211 212 212 212 212 212 186
3 4 4 4 4 4 4 3
Automotive 1.7 2.1 59.7% 13.8% 0.5% 0.4% 6.4% 8.6

6 7 7 7 7 7 7 6
Chemicals 3.0 1.8 53.1% 18.6% 4.3% 5.2% 2.6% 7.1

10 12 12 12 12 12 12 10
10 10 10 10 10 10 10 10
10 12 12 12 12 12 12 10
14 16 16 16 16 16 16 14
Healthcare 3.8 1.6 44.8% 27.4% 4.9% 6.3% 6.2% 6.5

6 7 7 7 7 7 7 6
15 15 15 15 15 15 15 15
Manufacturing 5.5 2.1 44.0% 24.0% 4.8% 3.8% 5.2% 5.3

15 16 16 16 16 16 16 15
Media 1.6 0.7 58.7% 12.7% 1.7% 2.6% 0.7% 4.2

14 19 19 19 19 19 19 14
Metals & Mining 7.1 3.9 42.4% 40.8% 10.9% 9.2% 12.6% 2.9
7 9 9 9 9 9 9 6
4 4 4 4 4 4 4 4
Oil & Gas 4.9 3.4 38.9% 35.3% 6.5% 17.4% 1.1% 3.1
14 13 14 14 14 14 14 14
Packaging 3.1 1.6 66.7% 15.7% 3.7% 3.6% 1.3% 10.2

4 5 5 5 5 5 5 4

3 3 3 3 3 3 3 3
25 27 27 27 27 27 27 25
Services 4.7 1.8 45.6% 26.7% 4.7% 5.0% 5.7% 5.9

11 13 13 13 13 13 13 10
Technology 2.3 3.6 33.8% 23.1% 0.7% 0.5% 16.8% 7.0

7 8 8 8 8 8 8 7

3 6 6 6 6 6 6 5
5 5 5 5 5 5 5 5

Exhibit C-5: Rating B
Aggregate 1.9 1.3 68.7% 12.1% 1.7% 2.0% 3.9% 6.1
n= 333 465 468 468 466 467 468 322
9 12 12 12 12 12 12 9
Automotive 1.4 1.5 82.0% 10.1% 1.0% 0.8% 3.6% 8.2

15 20 20 20 20 20 20 15
Chemicals 1.7 1.7 78.0% 9.4% 1.9% 1.4% 3.1% 6.2

10 19 19 19 19 19 19 12
3 6 6 6 6 6 6 3
28 36 36 36 36 36 36 24
29 36 37 37 37 37 37 26
Healthcare 2.3 1.1 60.7% 17.4% 2.6% 2.7% 4.4% 4.8

24 30 31 31 31 31 31 24
30 46 46 46 45 45 46 30
Manufacturing 2.0 1.0 66.9% 10.8% 2.3% 2.1% 2.5% 4.7

18 33 33 33 33 33 33 20
Media 1.4 0.6 76.0% 7.8% 0.1% 0.3% 2.0% 7.1

20 39 39 39 39 39 39 20
Metals & Mining 3.1 2.4 55.2% 21.6% 0.6% 0.7% 4.8% 4.6
11 11 11 11 11 11 11 8
11 18 18 18 18 18 18 10
Oil & Gas 5.9 3.0 44.7% 36.2% 6.8% 20.3% 1.1% 2.4
18 18 18 18 18 18 18 17
Packaging 1.5 1.3 80.1% 10.7% 0.0% -0.1% 1.8% 9.4

10 12 12 12 12 12 12 9
Pharmaceuticals 2.0 1.3 56.0% 11.8% -2.0% -0.1% 9.2% 5.9

5 6 6 6 5 6 6 5
36 42 42 42 42 42 42 35
Services 2.0 1.1 71.5% 12.5% 1.9% 2.9% 4.2% 5.4

16 29 29 29 29 29 29 15
Technology 2.3 2.2 45.2% 21.9% -0.1% -0.1% 19.8% 6.5

17 21 22 22 22 22 22 17
Telecommunications 0.8 1.1 74.4% 9.8% -0.6% -2.6% 4.5% 4.7

13 18 18 18 18 18 18 13
10 13 13 13 13 13 13 10

Exhibit C-6: Rating Caa-C
Aggregate 0.7 1.0 92.2% 6.4% -2.1% -2.6% 3.3% 7.3
n= 76 134 134 134 133 133 134 77
Aerospace & Defense 0.3 -0.1 132.2% -9.1% -14.1% -19.9% 0.3% 2.8
1 1 1 1 1 1 1 1
Automotive 0.5 1.0 83.9% 4.8% -4.9% -6.3% 2.3% 14.1

8 11 11 11 11 11 11 9
Chemicals 1.0 1.0 118.7% 6.6% 0.8% 0.7% 2.9% 1.5

1 4 4 4 4 4 4 1
Construction & Engineering 0.7 1.0 120.6% 2.4% -3.0% -2.2% 0.0% 5.5
1 1 1 1 1 1 1 1
Consumer Products 0.7 0.6 107.8% 1.7% -3.5% -3.9% 1.1% 7.0
4 9 9 9 9 9 9 5
Energy & Environment 1.8 1.6 54.7% 15.6% -3.8% -8.2% 1.0% 1.1
1 2 2 2 2 2 2 1
Healthcare 1.6 1.0 53.9% 30.0% 0.6% 0.6% 4.6% 19.5

2 3 3 3 3 3 3 2
Leisure & Entertainment 0.9 0.9 90.3% 6.2% 0.2% -3.9% 4.7% 12.8
3 8 8 8 7 7 8 3
Manufacturing 0.9 0.8 88.3% 6.7% -0.3% -0.6% 3.6% 5.4

5 12 12 12 12 12 12 5
Media 0.7 0.5 101.6% 6.2% -4.3% -9.4% 3.7% 4.6

8 18 18 18 18 18 18 9
Metals & Mining -9.0 46.0 43.6% -25.5% -9.8% -17.2% 21.8% 6.6
2 2 2 2 2 2 2 1
Natural Products -0.5 1.6 81.3% 2.3% -6.5% -5.5% 0.8% 3.2
2 3 3 3 3 3 3 2
Oil & Gas 2.6 2.3 48.6% 16.9% 3.7% 15.4% 1.0% 3.4
2 3 3 3 3 3 3 2
Packaging 0.5 0.8 116.4% 4.2% -3.6% -3.1% 1.0% 9.9

4 6 6 6 6 6 6 4
Pharmaceuticals
Retail & Distribution 1.1 1.1 81.9% 8.1% -0.1% -0.2% 3.8% 8.4
13 18 18 18 18 18 18 14
Services 0.2 0.8 115.3% 7.2% -3.1% -3.1% 3.2% 19.5

4 11 11 11 11 11 11 3
Technology 0.5 2.0 66.0% 14.5% -3.2% -4.2% 19.1% 4.9

2 2 2 2 2 2 2 2

7 10 10 10 10 10 10 6
Transportation Services 0.8 1.3 93.3% 8.4% -0.5% -0.8% 8.0% 7.7
6 10 10 10 10 10 10 6

Exhibit C-7: All Investment-Grade
Aggregate 6.5 2.4 43.6% 28.4% 6.3% 7.8% 4.6% 6.6
n= 344 393 395 395 395 395 395 348
10 10 10 10 10 10 10 10
Automotive 6.3 3.0 43.6% 39.3% 7.5% 5.5% 11.3% 4.1

5 5 5 5 5 5 5 5
Chemicals 6.0 2.2 50.3% 26.7% 6.1% 7.0% 5.1% 6.9

20 22 22 22 22 22 22 20
9 8 9 9 9 9 9 8
41 42 42 42 42 42 42 42
26 45 46 46 46 46 46 26
Healthcare 11.4 2.4 39.9% 40.7% 8.2% 9.6% 9.9% 6.6

18 19 19 19 19 19 19 18
11 11 11 11 11 11 11 11
Manufacturing 7.8 2.1 43.2% 30.6% 7.2% 7.7% 6.6% 7.4

35 36 36 36 36 36 36 35
Media 5.0 1.4 39.6% 21.6% 3.7% 7.8% 1.3% 9.0

21 24 24 24 24 24 24 21
Metals & Mining 8.2 4.6 28.4% 46.5% 7.7% 11.6% 13.3% 2.7
15 18 18 18 18 18 18 16
10 10 10 10 10 10 10 10
Oil & Gas 13.7 4.1 28.5% 67.2% 10.4% 17.5% 3.4% 2.3
20 20 20 20 20 20 20 20
Packaging 3.4 1.9 53.5% 18.8% 5.1% 4.6% 3.2% 8.0

5 5 5 5 5 5 5 5

11 11 11 11 11 11 11 11
31 32 32 32 32 32 32 31
Services 5.0 2.6 42.8% 37.0% 5.3% 7.3% 6.2% 8.2

12 14 14 14 14 14 14 12
Technology 10.0 4.8 25.1% 97.3% 9.9% 9.1% 20.0% 4.4

11 11 11 11 11 11 11 11

19 34 34 34 34 34 34 22
14 16 16 16 16 16 16 14

Exhibit C-8: All Speculative-Grade
Aggregate 2.1 1.4 66.8% 12.7% 1.9% 2.1% 3.9% 5.9
n= 595 810 814 814 811 812 814 585
13 17 17 17 17 17 17 13
Automotive 1.2 1.5 80.2% 8.6% 0.3% 0.2% 3.2% 9.5

29 38 38 38 38 38 38 30
Chemicals 2.2 1.7 71.4% 10.1% 2.2% 1.7% 2.7% 6.1

21 35 35 35 35 35 35 23
14 17 17 17 17 17 17 14
42 57 57 57 57 57 57 39
44 54 55 55 55 55 55 41
Healthcare 3.0 1.2 56.0% 19.7% 2.7% 3.8% 4.6% 5.5

32 40 41 41 41 41 41 32
48 69 69 69 67 67 69 48
Manufacturing 3.4 1.1 66.0% 12.8% 3.2% 2.9% 4.2% 5.1

38 61 61 61 61 61 61 40
Media 1.2 0.6 76.5% 7.8% 0.0% 0.0% 1.8% 6.5

42 76 76 76 76 76 76 43
Metals & Mining 3.7 3.2 51.6% 24.7% 5.5% 4.3% 9.7% 4.0
20 22 22 22 22 22 22 15
17 25 25 25 25 25 25 16
Oil & Gas 5.6 3.3 42.8% 35.9% 6.7% 19.1% 1.0% 2.4
34 34 35 35 35 35 35 33
Packaging 1.5 1.2 80.7% 9.1% -0.3% -0.4% 1.4% 9.6

18 23 23 23 23 23 23 17

8 9 9 9 8 9 9 8
74 87 87 87 87 87 87 74
Services 2.2 1.1 68.7% 13.3% 1.6% 2.7% 4.2% 6.1

31 53 53 53 53 53 53 28
Technology 2.2 2.5 42.3% 21.4% 0.0% -0.1% 19.4% 6.2

26 31 32 32 32 32 32 26

23 34 34 34 34 34 34 24
21 28 28 28 28 28 28 21

Appendix D Definition of Financial Metrics
• Interest Coverage:
– (EBIT - Interest Capitalized + (1/3)*Rental Expense) / (Interest Expense + (1/3)*Rental Expense +
Preferred Dividends/0.65)
• Asset Coverage:
– (Total Assets - Goodwill - Intangibles) / Total Debt
• Leverage:
– (Total Debt + 8*Rental Expense) / (Total Debt + 8*Rental Expense + Deferred Taxes + Minority
Interest + Total Equity)
• Cash Flow/Debt:
– (Net After-Tax Income Before X-Items + Depreciations - Dividends) / (Total Debt + 8*Rental
Expense)
• Return on Assets:
– Net After-Tax Income Before X-Items / 2 Year Average Assets
• Profit:
– Net After-Tax Income Before X-Items / Net Sales
• Liquidity:
– Cash & Market Securities / Total Assets
• Revenue Stability:
– 5 Year Average Net Sales / 5 Year Standard Deviation Net Sales

Appendix E Definition of Industry Aggregates
In this report we study the distribution of financial ratios across 20 industry aggregates. These aggregates are based on
proprietary Moody’s coding of broad and specific industry categories. They may generally be described as follows:
• Aerospace & Defense
– Aircraft, aerospace and defense equipment and parts manufacturers.
• Automotive
– Commercial and passenger automotive and parts manufacturers.
• Chemicals
– Agricultural, commodity and specialty chemicals producers.
• Construction & Engineering
– Commercial and residential construction, homebuilding.
• Consumer Products
– Packaged food and beverage, household and personal care products, apparel and shoes, textiles and
durable consumer products.
• Energy & Environment
– (Non-utility) electricity production, merchant energy, oil service and pipeline operators, environmental
services and waste management.
• Healthcare
– Hospitals, long-term care facilities, outpatient facilities, medical device manufacturers and medical
service providers.
• Leisure & Entertainment
– Casinos, lodging, restaurants and general amusements.
• Manufacturing
– Heavy machinery, building materials, (low technology) component equipment, (non-consumer)
finished products, and transportation equipment manufacturers.
• Media
– Book and newspaper publishing, broadcast and subscription radio and television, and diversified media.
• Metals & Mining
– Coal and metal mining, aluminum and steel production and recycling.
• Natural Products
– Pulp and (non-packaging) paper, wood products, agriculture, protein and tobacco processors.
• Oil & Gas
– Oil & gas exploration and production, refining and marketing, and integrated oil companies.
• Packaging
– Paper, glass, metal and plastic packaging.
• Pharmaceuticals
– General and specialty.
• Retail & Distribution
– Grocery stores, drug stores, department stores, general and specialty merchandise retailers, and various
wholesale distributors.
• Services
– Business services, consumer services, technology services, and defense services.
• Technology
– Computer hardware, software, component equipment, consumer electronics, semiconductor and
contract manufacturers.

• Telecommunications
– Wireless, wireline, towers, satellite equipment and services, equipment manufacturers and integrated
telecommunications companies.
• Transportation Services
– Equipment leasing, airlines, air freight, railroad and maritime shipping, commuter transportation.

References
Hamilton, D. (2005), “Moody’s Senior Ratings Algorithm & Estimated Senior Ratings,” Moody’s Global Credit
Research, July 2005.
Metz, A., et. al. (2004), “The Distribution of Common Financial Ratios by Rating and Industry for North American
Non-Financial Corporations,” Moody’s Special Comment, December 2004.
Metz, A., et. al. (2006), “The Distribution of Common Financial Ratios by Rating and Industry for North American
Non-Financial Corporations,” Moody’s Special Comment, February 2006.

PAGE INTENTIONALLY LEFT BLANK
To order reprints of this report (100 copies minimum), please call 1.212.553.1658.
Report Number: 98551
Author Production Associates

Albert Mertz Cassina Brooks
David Ainsworth
© Copyright 2006, Moody’s Investors Service, Inc. and/or its licensors and affiliates including Moody’s Assurance Company, Inc. (together, "MOODY’S"). All rights reserved. ALL
INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED,
FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN
ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT. All information contained herein is obtained by
MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided “as
is” without warranty of any kind and MOODY’S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness
for any particular purpose of any such information. Under no circumstances shall MOODY’S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by,
resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY’S or any of its directors, officers, employees or
agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect,
special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY’S is advised in advance of the possibility of such
damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information
contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY,
EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER
OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any
investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of
each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling.
MOODY’S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by
MOODY’S have, prior to assignment of any rating, agreed to pay to MOODY’S for appraisal and rating services rendered by it fees ranging from $1,500 to $2,400,000. Moody’s Corporation
(MCO) and its wholly-owned credit rating agency subsidiary, Moody’s Investors Service (MIS), also maintain policies and procedures to address the independence of MIS’s ratings and rating
processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly
reported to the SEC an ownership interest in MCO of more than 5%, is posted annually on Moody’s website at www.moodys.com under the heading “Shareholder Relations — Corporate
Governance — Director and Shareholder Affiliation Policy.”
This credit rating opinion has been prepared without taking into account any of your objectives, financial situation or needs. You should, before acting on the opinion, consider the
appropriateness of the opinion having regard to your own objectives, financial situation and needs.

Industry Ratios PDF

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Industry Ratios PDF

Transféré par

Droits d'auteur :

Formats disponibles

Special Comment

The Distribution of Common Financial Ratios by

2 Moody’s Special Comment

I Data and Methodology................................................................................................................. 4

Moody’s Special Comment 3

II Metrics by Rating Category Aggregated Across All Industries

Exhibit 1: Aggregate Metrics by Rating Category

Source: Moody's ratings and financial database as of July 1, 2006

4 Moody’s Special Comment

Exhibit 2: Industry Coverage

Source: Moody's ratings and financial database as of July 1, 2006

Moody’s Special Comment 5

Exhibit 3: Median Baa Interest Coverage Ratio

Source: Moody's ratings and financial database as of July 1, 2006

6 Moody’s Special Comment

Exhibit 4: Median Baa Asset Coverage Ratios

Source: Moody's ratings and financial database as of July 1, 2006

Moody’s Special Comment 7

Exhibit 5: Median Baa Leverage Ratios

8 Moody’s Special Comment

Exhibit 6: Median Baa Cash Flow-to-Debt Ratios

Oil & Gas

Source: Moody's ratings and financial database as of July 1, 2006

Moody’s Special Comment 9

Exhibit 7: Median Baa Return on Assets

Source: Moody’s ratings and financial database as of July 1, 2006

10 Moody’s Special Comment

Exhibit 8: Median Baa Profit Margins

Oil & Gas

Source: Moody’s ratings and financial database as of July 1, 2006

Moody’s Special Comment 11

Exhibit 9: Median Baa Liquidity Ratios

Source: Moody’s ratings and financial database as of July 1, 2006

12 Moody’s Special Comment

Exhibit 10: Median Baa Revenue Stability Ratios

Source: Moody’s ratings and financial database as of July 1, 2006

Moody’s Special Comment 13

Exhibit 11: Summary of Standardized Baa Metrics

Source: Moody’s ratings and financial database as of July 1, 2006

14 Moody’s Special Comment

Source: Moody’s ratings and financial database as of July 1, 2006

Moody’s Special Comment 15

Exhibit A-1: Median Coverage Ratios

Automotive 3.6 6.8 1.7 1.4 0.5 6.3 1.2

Chemicals 6.3 5.7 3.0 1.7 1.0 6.0 2.2

Healthcare 34.7 14.2 9.6 3.8 2.3 1.6 11.4 3.0

Manufacturing 12.6 8.5 6.5 5.5 2.0 0.9 7.8 3.4

Media 8.7 3.9 1.6 1.4 0.7 5.0 1.2

Natural Products 6.2 3.1 3.1 1.1 -0.5 3.7 1.3

Packaging 4.9 3.3 3.1 1.5 0.5 3.4 1.5

Pharmaceuticals 19.2 28.7 2.1 27.0 2.0 14.4 11.2

Services 12.5 4.9 4.6 4.7 2.0 0.2 5.0 2.2

Technology 4.6 22.4 8.5 2.3 2.3 0.5 10.0 2.2

Telecommunications 4.8 2.9 3.3 0.8 0.2 3.5 0.8

16 Moody’s Special Comment

Automotive 3.4 3.0 2.1 1.5 1.0 3.0 1.5

Chemicals 2.2 2.4 1.8 1.7 1.0 2.2 1.7

Healthcare 3.6 2.8 2.4 1.6 1.1 1.0 2.4 1.2

Manufacturing 4.6 2.2 1.9 2.1 1.0 0.8 2.1 1.1

Media 2.1 1.3 0.7 0.6 0.5 1.4 0.6

Natural Products 3.2 2.7 3.8 1.4 1.6 2.9 1.6

Packaging 1.9 1.9 1.6 1.3 0.8 1.9 1.2

Pharmaceuticals 3.5 3.1 2.8 2.8 1.3 2.9 1.6