Bond ratings are positively related to
A) Leverage.
B) Size.
C) Type of business.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Bond ratings are positively related to size, as larger firms are generally perceived as lower risk and more stable. Leverage and type of business can have an impact on bond ratings, but the relationship is not always positive. Higher leverage can increase risk and lower ratings, while certain business types may be considered riskier than others.

Bond Ratings Are Positively Related to