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When bond rating companies rate a bond, which are qualities they evaluate? Pick more than 1...

When bond rating companies rate a bond, which are qualities they evaluate? Pick more than 1

  1. Profitability of the bond issuer
  2. Default probability of the bond issuer
  3. Management team of the bond issuer
  4. Protection offered to bond investors in the event of default
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Answer #1

Qualities evaluated by rating companies are:

  1. Profitability of the bond issuer
  2. Default probability of the bond issuer
  3. Protection offered to bond investors in the event of default

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