Additional negative rating drivers could include declines in investment performance, a key-man event and/or legislative risk
that negatively impact the company's ability to raise FAUM and generate fees, material declines in FEBITDA margins, failure to maintain leverage within Fitch's 'BBB' category benchmark range longer term, and/or impairment of the liquidity profile.
This means more training, quality assurance requirements and legislative risk
for shrinking teams of military maintainers and operators to manage.
The lobbyists, more often than not, are paid by companies with interests subject to what business professors call "legislative risk
" - the chance that the government will do something to hurt or help their businesses.
Risk sharing, on the other hand, means that the government will assume regulatory and legislative risk
while the private sector covers the planning and design risk.
Insight: Senior executives must rise to the emerging challenge of 'legislative risk
No legislative risk
: Because tax-free accounts cost the government billions of dollars per year, they are an ever-growing target for revenue-hungry legislators.
and product liability; regulatory and compliance risks associated with drugstore operations; legislative risk
and uncertainty associated with health-care and pharmacy benefits; dependence on IT systems in operations and the risk of disruption in those systems; the possibility of catastrophic events, weather-related or human-made disasters.
As with other truly revolutionary technologies, ordinary risks are amplified, such as that of litigation, and ordinarily irrelevant considerations may become important, such as the heightened level of both domestic and foreign legislative risk
* Legislative risk
occurs because of potential changes in current law that may erode the value of current and past tax positions.
In my opinion, the two greatest risks to municipal-bond investing are what they always have been: interest rate risk and legislative risk
. With both, individual investors have very little control.
Rating constraints include DFS's concentrated and cyclical business model, heavier reliance on wholesale funding, interest rate sensitivity associated with internet deposits in a rising rate environment, the likelihood of asset quality reversion from current levels, threats from disruptive technologies in the payments space, and elevated regulatory and legislative risk
. Furthermore, ratings remain constrained by DFS's relatively weaker market position within the highly competitive payments industry, as evidenced by its smaller market share compared to payment network peers (e.g.
"The most significant risk facing the cannabis industry is legislative risk
," said David Friedman, MJIC CEO.