Company X has a rating that is below investment grade.

Vendor: AFP
Product: CTP
Update on: Oct 21, 2025
Questions: 1076

AFP CTP Question Answer

Company X has a rating that is below investment grade. The treasurer would prefer to use commercial paper for its short-term financing needs and has a commitment from its bank to provide a standby letter of credit. What costs would be associated with this process?

Rating agency charges, credit enhancement costs, and dealer fees

Discount, broker fees, and commitment fees

Dealer fees, compensating balances, and participation fees

Commissions, rating agency charges, and broker fees