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I have a question that may not have an answer. But, I'll give it a try anyway. If anyone can help I'd appreciate it immensely. I'm trying to get a little more sophisticated in how I look at my investments. Trying to get under the hood of the car, so to speak.

We all know that credit rating downgrades are bad for business. But, how bad? Can it quantified, or at least estimated?

Even if a company is heavily leveraged, if that debt is all long term and their cash is sufficient for operations, then a credit downgrade has a relatively minor effect. It will only effect their ability to access fresh credit. However, if a company requires continual access to credit through revolving lines of credit, a downgrade would be severely detrimental.

Is there any way to estimate the cost of a credit downgrade from a companies financial statements?

Thanks for any help. I realize the question may be too vague, but what the heck...
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