Which of the following is true for bond rating companies?
A) bond ratings are issued exclusively by Moody's
B) bond ratings are of interest only at the time the bond is issued
C) bond ratings can be changed by the rating agency as the issuer's circumstances change
D) the higher the bond rating the greater the interest paid.

Question

Quizplus · Accepted Answer

Bond ratings are subject to change by the rating agency based on the issuer's financial health and other relevant factors. This means that if the issuer's circumstances improve or deteriorate, the rating agency can upgrade or downgrade the bond rating accordingly.

Which of the Following Is True for Bond Rating Companies