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The credit rating is a composite figure that reflects demonstrated ability to meet a company's financial obligations and the likelihood of continuing to meet those obligations in the future. Interest rates on bank loans and new bond issues, as well as the selling price of new common stock issues, are determined, in part, by a firm's credit standing. Three different credit ratings are possible for firms competing in The Business Policy Game: superior (Number 1), preferred (Number 2) and average (Number 3). Credit ratings are reported in the Quarterly Industry Report. Each firm starts the simulation with a preferred credit rating (Number 2).
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