Fed's commercial-paper plan leaves firms with weaker credit in the cold:

10/8/2008 | Financial Week

When the Federal Reserve starts buying three-month commercial paper from cream-of-the-crop corporations -- those with the highest credit ratings -- companies with less-than-stellar credit will be left to the options they have already: tapping lines of credit, wringing cash from working capital, selling accounts receivable and other assets, and hastily arranging stock offerings. The Fed looks to unclog the commercial-paper market by targeting large financial brokers and top-tier banks, said Fred Dickson, director of private client research for investment bank D.A. Davidson.

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