Rating agencies assign their ratings of a firm's bonds based on the

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Rating agencies assign their ratings of a firm's bonds based on the likelihood of default on the bond, as this is a key factor in assessing the risk associated with the bond. Other factors such as market value, capital assets, interest rate paid, and total number of bonds in circulation may also be considered, but the likelihood of default is typically the most important factor.

Rating Agencies Assign Their Ratings of a Firm's Bonds Based