Which of the following is likely to be used by a bond rating agency to rate a government's general obligation bonds?
A) A review of the basic financial statements.
B) Consideration of economic statistics such as unemployment rates.
C) Consideration of legal debt margin.
D) All of the above.

Question

Quizplus · Accepted Answer

Bond rating agencies evaluate a variety of factors when rating government bonds, including reviewing the government's financial statements to assess fiscal health, considering economic indicators like unemployment rates that can affect the government's revenue and ability to repay debt, and evaluating legal debt margins to understand statutory limits on borrowing.

Which of the Following Is Likely to Be Used by a Bond