Bank Deposits - Credit Rating dropped / Loan amount available dropped
Posted: Fri Apr 26, 2024 11:39 am
Afternoon All,
So I decided that I wanted to maximise my income by not having any bank deposits from anyone else. I had more than enough cash sitting so I changed the deposit rate to as low as it would go so all the depositors left me. My balance sheet coverage was circa 90% with just my own funds.
That worked fine...apart from the fact that the borrowing amount I was being offered by my bank dropped from say £15bn to like £0.
It dropped my credit rating aswell from A down to B I think it was.
But I have more than enough cash sitting so surely it should effect my company credit rating and surely the borrowing should have been able to be at what cash I had (Around £15bn at the time)
So I decided that I wanted to maximise my income by not having any bank deposits from anyone else. I had more than enough cash sitting so I changed the deposit rate to as low as it would go so all the depositors left me. My balance sheet coverage was circa 90% with just my own funds.
That worked fine...apart from the fact that the borrowing amount I was being offered by my bank dropped from say £15bn to like £0.
It dropped my credit rating aswell from A down to B I think it was.
But I have more than enough cash sitting so surely it should effect my company credit rating and surely the borrowing should have been able to be at what cash I had (Around £15bn at the time)