A loan credit rating is the same as bond credit rating in that it is based solely on the financial soundness of the underlying corporation.

Question

Quizplus · Accepted Answer

While both loan credit ratings and bond credit ratings are based on the financial health of the corporation, they are not the same thing. The main difference is that loan credit ratings assess the creditworthiness of a borrower seeking a loan, while bond credit ratings assess the creditworthiness of the issuer of a bond. Additionally, loan credit ratings are often more focused on short-term ability to repay the loan, while bond credit ratings are more concerned with long-term financial stability.

A Loan Credit Rating Is the Same as Bond Credit