Bond ratings are significantly based on all of the following except for which one?

Question

Quizplus · Accepted Answer

Bond ratings are typically based on factors such as the issuer's financial stability, credit history, and ability to repay the bond's principal and interest. The times interest earned ratio, debt-to-equity ratio, and current ratio are all measures of an issuer's financial strength and stability, therefore are taken into consideration when determining bond ratings. However, return on assets is not typically used as a primary factor in determining bond ratings.

Bond Ratings Are Significantly Based on All of the Following