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im Rahmen der Toleranzgrenzen der Ratingagenturen

English translation: to external loan capital over equity capital within the threshold of what the credit rating agencies

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11:19 Nov 15, 2001
German to English translations [PRO]
Bus/Financial / capital markets
German term or phrase: im Rahmen der Toleranzgrenzen der Ratingagenturen
Um die Kapitalstruktur zu optimieren und die Kapitalkosten möglichst gering zu halten, bevorzugen wir – im Rahmen der Toleranzgrenzen der Ratingagenturen – Fremdkapital vor Eigenkapital.

Where does this fit in my translation: To optimize capitalization and to keep capital expenditure as low as possible, we give preference to borrowed capital than to owner’s capital.
Marcus Malabad
Canada
Local time: 11:52
English translation:to external loan capital over equity capital within the threshold of what the credit rating agencies
Explanation:
To optimize capitalization and to keep capital expenditure as low as possible, we give preference to external loan capital over equity capital within the threshold of what the credit rating agencies will tolerate.

First:Ratingagenturen are Credit Rating agencies such as Standard and Poors. They give coountries or large companies a "rating" (like AAA, AA+ etc) which is a grade that reflects the economic "soundness" of the applicant. It is used when looking for loan/external(Fremdkapital)as it will determine the conditions of the loan(interest rates, costs of acquiring the loan,payment terms).

The "Toleranzgransen" means how far (the threshold) the company can go loaning external capital without upsetting its credit rating grade. The better the grade, the easier to get a loan.

About Fremd/Eigenkapital, expl. for using external/equity:

...meaning the company finds it more attractive in terms of the future value of the company to finance expansion by loan funding (i.e. banks or other credit institutions) than by going public (becoming quoted on the stock market) or if already on the stock market by making an offer (stocks) in exchange for attracting equity capital (investors that "own" a stock become owners hence the term Eigenkapital.

(1) I recommend "external" for Fremdkapital, "foreign" capital in English may mean coming from another country (attracting investors from the US when you're a German company f. ex.)
(2) I also recommend "equity capital" it is more pro for "Eigenkapital". British English sometimes will use the term "proprietary" capital but "equity" is broader.

Hope this makes it easier for you
Selected response from:

Carole Muller
Denmark
Local time: 11:52
Grading comment
I should've seen your answer much sooner!
4 KudoZ points were awarded for this answer

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Summary of answers provided
5to external loan capital over equity capital within the threshold of what the credit rating agenciesCarole Muller
4 +1suggestionBeth Kantus
4suggestion
Johanna Timm, PhD
4oops!Beth Kantus
3 -1in respect of the maximum tolerance level of the rating companiesGraham Stull


  

Answers


4 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): -1
in respect of the maximum tolerance level of the rating companies


Explanation:
...or rating agencies - da bin ich mir nicht so sicher.

Auch anstatt 'maximum tolerance level', 'limits of tolerance'.

Graham Stull

Peer comments on this answer (and responses from the answerer)
disagree  Annette Aryanpour: 'Threshold' is a better and more suitable word for "Toleranzgrenzen". Tolerance level sounds manufactured. In a case such as this, I would possibly turn the sentence around: e.g. Within the threshold of the rating agencies, we give preference .....
11 hrs
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14 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
suggestion


Explanation:
To optimize capitalization and to keep capital expenditure as low as possible, we give preference to borrowed capital over owner’s capital,while( at the same time) respecting the rating agencies' tolerance levels.


    professional experience
Johanna Timm, PhD
Canada
Local time: 02:52
Native speaker of: Native in GermanGerman
PRO pts in pair: 7302
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31 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
suggestion


Explanation:
In order to optimize our capital structure and minimize capital expenditure (or keep our cost of capital as low as possible), we prefer debt to equity financing (within or to the extent of )the rating agencies' tolerance limits.

Untitled
... In order to keep our cost of capital as low as possible, we prefer, to the extent
of the rating agencies' tolerance limits, debt over equity. In addition, we ...
www.hannover-re.com/english/investor_relations/company_over... strategy/index.unten.php - 20k - Cached - Similar pages

Self-image and strategy
... In order to keep our capital costs as low as possible, we prefer, to the extent
of the rating agencies' tolerance limits, debt over equity. In addition, we ...
production.investis.com/hnr-report/6/ - 18k - Cached - Similar pages

[PDF] SELF-IMAGE AND STRATEGY
File Format: PDF/Adobe Acrobat - View as HTML
... profit targets. In order to keep our capital costs as low as possible, we prefer,
to the extent of the rating agencies' tolerance limits, debt over equity. In ...
production.investis.com/hnr-report/pdf/6.pdf

HTH!

Beth Kantus
United States
Local time: 05:52
Native speaker of: English
PRO pts in pair: 924

Peer comments on this answer (and responses from the answerer)
agree  Ralf Lemster: I prefer 'cost of capital'
3 hrs
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33 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
oops!


Explanation:
sorry, that opening parenthesis should be after within ...


...within (or to the extent of) the rating agencies' ...

Beth Kantus
United States
Local time: 05:52
Native speaker of: English
PRO pts in pair: 924
Login to enter a peer comment (or grade)

47 mins   confidence: Answerer confidence 5/5
to external loan capital over equity capital within the threshold of what the credit rating agencies


Explanation:
To optimize capitalization and to keep capital expenditure as low as possible, we give preference to external loan capital over equity capital within the threshold of what the credit rating agencies will tolerate.

First:Ratingagenturen are Credit Rating agencies such as Standard and Poors. They give coountries or large companies a "rating" (like AAA, AA+ etc) which is a grade that reflects the economic "soundness" of the applicant. It is used when looking for loan/external(Fremdkapital)as it will determine the conditions of the loan(interest rates, costs of acquiring the loan,payment terms).

The "Toleranzgransen" means how far (the threshold) the company can go loaning external capital without upsetting its credit rating grade. The better the grade, the easier to get a loan.

About Fremd/Eigenkapital, expl. for using external/equity:

...meaning the company finds it more attractive in terms of the future value of the company to finance expansion by loan funding (i.e. banks or other credit institutions) than by going public (becoming quoted on the stock market) or if already on the stock market by making an offer (stocks) in exchange for attracting equity capital (investors that "own" a stock become owners hence the term Eigenkapital.

(1) I recommend "external" for Fremdkapital, "foreign" capital in English may mean coming from another country (attracting investors from the US when you're a German company f. ex.)
(2) I also recommend "equity capital" it is more pro for "Eigenkapital". British English sometimes will use the term "proprietary" capital but "equity" is broader.

Hope this makes it easier for you


    Economist, Policy Analyst (Phd) 15 yrs experience.
    Also responsible for writing and updating (in English) the Credit Rating report of government X
Carole Muller
Denmark
Local time: 11:52
PRO pts in pair: 4
Grading comment
I should've seen your answer much sooner!
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