To earn a high rating from the bond rating agencies,a firm should have

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A low debt to equity ratio signifies that the firm has relatively low levels of debt and is less likely to default on its obligations, which is desirable for bondholders. A high quick ratio shows that the firm has sufficient liquid assets to meet its short-term debt obligations. This too is positive for bondholders as they are primarily concerned with a firm's ability to meet its debt obligations in a timely manner. A low times interest earned ratio, on the other hand, indicates a greater likelihood of default, which is a negative for bondholders.

To Earn a High Rating from the Bond Rating Agencies,a