Which TIIRCC of the following are most likely to reduce the long term credit rating...

We want items that are most likely to reduce the long-term credit rating (i.e. make lenders view the company as riskier).

B. Issue of a new bond for an NPV = 0 project – Adds more debt without adding extra value. Higher gearing = more financial risk → likely worse credit rating.

C. New shares funding expansion into a high-risk market – Even though financed by equity, this increases business risk (earnings more volatile, uncertainty higher). Rating agencies also consider business risk → rating can fall.

D. Loss of a major customer (30% of revenue) – Big hit to revenue concentration and stability. Very likely to be credit-negative.

Not chosen:

A. New shares + NPV 0 project – Adds equity, no extra risk; may even strengthen the balance sheet.

E. Disposal of loss-making division, funds paid as special dividend – You lose equity, but you also remove a division that was destroying profits and cash. Net effect is mixed, but not as clearly rating-negative as B, C, or D.

So the “most likely to reduce” ones are B, C, D.