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Michel Daoud
Michel Daoud's picture

is there a connections between the corporate bonds rating and the credit ratings?and if so could you name a company that her bond ratings was affected from the credit ratings

Jason Pride
Jason Pride's picture

Hi Michel,

Corporate bond ratings focus on the firm's assets, income, and ability to repay the bond interest over time and the principle at maturity. Special issue bonds also take into account the purpose of the funds and the likelihood of success. Of course the rating must also account for the firm's history of repaying it's debts. The bond rating will be effected by the firm's credit rating, but the two are not directly related.