No. of Recommendations: 0 is my question again...

I read in a WSJ article that, LEH will issue new common shares to raise capital. However it mentioned that one of the reasons for taking the common shares route was because credit rating agencies look at preferred to common shares ratios, and LEH will get a good mix at this point by issuing more commons.

Should I understand this as debt-equity ratio, i.e., lower the preferred-common the better rating?

Thanks for your answer in advance..
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