CREDIT APPROVAL MEMORANDUM

Borrower:	Apple Inc.	Ticker:	AAPL
Sector:	Technology	Date:	2026-02-19
Internal Rating:	AA	Score:	92/100
PD Rating:	0.01% - Minimal	Regulatory:	Pass

Executive Summary

This memorandum recommends approval of the proposed credit facility for Apple Inc.. Apple continues to demonstrate robust pricing power despite inflationary pressures. Services revenue is a key growth driver, outpacing hardware sales.

Key Credit Metrics

Metric	Value	Guideline/Covenant
Net Leverage (Debt/EBITDA)	0.9x	< 3.5x
Interest Coverage (EBITDA/Int)	16.4x	> 5.0x
Liquidity Score	93.2	> 70

Financial Analysis

Revenue & Earnings: The company generated $321.4B in revenue in 2024, with EBITDA of $130.0B. Forecasts indicate continued growth.

Liquidity: The company maintains a strong liquidity profile with access to capital markets and revolving credit facilities.

Cash Flow: Free Cash Flow conversion remains strong, supporting debt service and capital returns.

Risk Factors

Regulatory scrutiny in the EU and US regarding the App Store ecosystem remains a primary overhang. Supply chain concentration in Asia poses geopolitical risks.
Macroeconomic headwinds impacting consumer spending.
Technological disruption from competitors.

Recommendation

Approve. The risk/reward profile is favorable.

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Credit Officer