05.07.2009

Borrowers are rated by lenders according to the borrower’s credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. The rating determined by a rating agency indicates the agency’s opinion of the likelihood that a borrower such as a corporation or sovereign nation will be able to repay its debt

The Cost Plus Method measures the comparable uncontrolled cost of manufacturing a product plus an “appropriate” profit margin. IEC for instance works under the cost plus pricing method and reimbursed for its costs from the electricity tariff