Risk-to-Price Commentary: Rautaruukki Oyj Feb 11
Standard & Poors, February 2011
Abstract
On Feb. 3 Rautaruukki Corp., a major Finnish steel construction and engineering company, disappointed investors with its fourth-quarter report. Rautaruukki's shares dropped 4% the day after the company said that its fourth-quarter net loss of €30 million fell short of the consensus estimate of a €19 million profit (see chart 1). Share price and its volatility is one of the influential components of the Risk-to-Price (R2P) scoring model. R2P measures on a relative basis how well a given security compensates investors, through yield, for underlying market and credit risks. The first quartile contains the highest-scoring issues, which best compensate investors for underlying risks; the lowest scores rank in the fourth quartile. Having digested this disappointing earnings report and investors' negative...
Companies mentioned in this report are:
- Norsk Hydro ASA
- BHP Billiton Finance Ltd.
- ThyssenKrupp AG
- ThyssenKrupp Finance Nederland B.V.
- Arcelor S.A.
- Anglo American Capital PLC
- ArcelorMittal Finance
- Xstrata Finance (Canada) Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Norsk Hydro ASA
- BHP Billiton Finance Ltd.
- ThyssenKrupp AG
- ThyssenKrupp Finance Nederland B.V.
- Arcelor S.A.
- Anglo American Capital PLC
- ArcelorMittal Finance
- Xstrata Finance (Canada) Ltd.
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