WEEK 4

Respond 1:  Waddell & Reed Financial, Inc. WDR issuer rating has been downgraded from Baa3 to Ba1 and the confirmation has been assigned a Corporate Family Rating (CFR) of Ba1 by Moody's Investors Service, a rating arm of Moody's Corporation. Simultaneously, the confirmation's prospect has been alterable to steady from denying. Owing to a challenging matter environment and consecutive net outflows abutting all of its distribution channels, Waddell & Reed has been reporting a lapse in its possessions inferior administration (AUM) gone the spent few years. Over the latest five years (2013-2017), AUM decreased at a CAGR of 10.5%. As a consequence, its competitive comcomposition among the activity dilutedened. Adding to this, the intercourse of stout intangibles on the confirmation's pit fencing increases miss. Moreover, looking at the confirmation's fresh investments, the reinvestment of $300 darling of its specie reserves into a portfolio of investment gradation unwandering proceeds securities after a occasion a one-year medium protraction increases its negotiate miss.   Respond 2:  Two companies that I build familiar downgrades allied to supply work or association ratings among the latest five years are Exxon Mobil and Tesla Inc. Exxon Mobil Corp is an American multinational oil and gas confirmation occasion Tesla is an American automotive and motive confirmation. Both companies' downgradation is for-the-most-part caused by their deteriorating finances, haughty default levels, diluted liquidity composition. The way these downgrades would impression the audit miss is that they collect the auditors an purpose of the forthcoming viability of the confirmation. Downgrades allude-to that the default of the confirmation is further than its receivables or that the confirmation has unbecoming administration. This would aid auditors apprehend that the matter miss is haughty for lenders and equable the investors may not get their specie end.