Financial Transactions on CompPress | Transfer Pricing Resources

Debt Capacity and Borrower Analysis: How Much Debt Is Arm's Length?

Wed, 22 Oct 2025 00:00:00 +0000

Related reading (Comp-Press resources page): This article develops the quantum question introduced in Intercompany Loans: The Arm’s Length Framework and Accurate Delineation. It precedes and feeds into Credit Rating for Intercompany Loans: Standalone Ratings, Implicit Support, and the Rating Build and Interest Rate Benchmarking for Intercompany Loans: CUP Approaches and Yield Construction. The full sequence is set out in How to Run an Intercompany Loan Benchmarking Analysis: A Step-by-Step Guide.

Two Questions, Not One

A loan analysis answers two distinct questions about the borrower, and they must not be collapsed into one:

Credit Rating for Intercompany Loans: Standalone Ratings, Implicit Support, and the Rating Build

Wed, 19 Nov 2025 00:00:00 +0000

Related reading (Comp-Press resources page): This article sits between Debt Capacity and Borrower Analysis: How Much Debt Is Arm’s Length? and Interest Rate Benchmarking for Intercompany Loans: CUP Approaches and Yield Construction in the intercompany loan cluster, and it applies the framework set out in Intercompany Loans: The Arm’s Length Framework and Accurate Delineation. The complete workflow is in How to Run an Intercompany Loan Benchmarking Analysis: A Step-by-Step Guide.

Why the Rating Matters

The arm’s length interest rate on a loan is built from two components:

Interest Rate Benchmarking for Intercompany Loans: CUP Approaches and Yield Construction

Wed, 10 Dec 2025 00:00:00 +0000

Related reading (Comp-Press resources page): This is the pricing article in the intercompany loan cluster. It follows Credit Rating for Intercompany Loans: Standalone Ratings, Implicit Support, and the Rating Build, which supplies the rating that drives the spread, and it applies the framework in Intercompany Loans: The Arm’s Length Framework and Accurate Delineation and the quantum analysis in Debt Capacity and Borrower Analysis: How Much Debt Is Arm’s Length?. The end-to-end workflow is in How to Run an Intercompany Loan Benchmarking Analysis: A Step-by-Step Guide.