Is it possible for a company to have two debt issues with different debt ratings?
A)No, the rating agency evaluates the creditworthiness of the company.
B)Yes, but only if the company is a multinational and the debt has been issued in different countries.
C)No, the company's credit is the same for all bonds.
D)Yes, the rating agency evaluates the creditworthiness of the issue, not the company.

Question

Quizplus · Accepted Answer

A company can have multiple debt issues with different debt ratings because the rating agency evaluates each issue based on its specific terms and conditions, not solely on the creditworthiness of the company as a whole. Therefore, it is possible for a company to have one debt issue with a high rating and another debt issue with a low rating.

Is It Possible for a Company to Have Two Debt