[aquaswim47]

CHH has an interest-coverage of 9.6 (144,000,000/15,000,000). It's EBIT / Interest Expense. From (cash flow from opeating activities - capital expenditures) /interest expense, their ratio is 9.11 and their cash / interest expense is 2.4. To be fair, their current assets / interest expense is 5.81.

The company has about 6 months of an emergency fund in its holdings. That's not that solid. If they are unable to collect their debt obligations, they have about three months of an emergency fund. Moreover, they bring in operating income that is 9.6 times the amount of their interest expense. Great work.

By the way, BBB is not that great of a rating; Enron had the same rating in 1999. It shows how brilliant FirstConsul is; he went right to the heart of the issue. It's cash flow from OA is strong, but all it takes is one or two bad quarters.