Debt ratings issued by companies such as Moody's and Standard and Poor's depend on:

Question

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Debt ratings issued by companies such as Moody's and Standard and Poor's depend on the probability of the firm's default, and the protection given in the indenture in case of default. The other options such as size of the company, number of restrictive covenants, fee paid by the issuer, type of issue, and their industry may have some impact, but the primary factor is the default risk and protection given to the investors.

Debt Ratings Issued by Companies Such as Moody's and Standard