# kaal:claim:5583610-027

**Claim.** For large issuers, the favorable accounting treatment and fiat-parity redemption revenue could improve credit ratings enough to save as much as $440 million a year in interest through debt refinancing.

**Type.** empirical  **Support.** argued

**Holds when.**

- large issuers with substantial loyalty programs and $25 to $40 billion debt loads
- credit rating improvement of one to two notches

**Source quote.**

> For large firms, the favorable accounting treatment could result in annual savings of up to $440 million through debt refinancing, as enhanced credit ratings lower interest expenses.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 5.2. Economic Incentives for Shareholder Retention, page 23

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Topics.** economics

**Keywords.** credit-ratings, debt-refinancing, cost-savings, issuer-economics

**Related claims.**

- restates: https://wulfkaal.github.io/claims/5454054-009

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