From a creditor's point of view, the higher the debt to assets ratio, the lower the risk that the company may be unable to pay its obligations.

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From a creditor's point of view, the lower the debt to assets ratio, the lower the risk that the company may be unable to pay its obligations. This is because a higher debt to assets ratio indicates that a larger portion of the company's assets are financed by debt, which increases the risk of default if the company experiences financial distress.

From a Creditor's Point of View, the Higher the Debt