What's in a Bond Rating**
Thomas F. Pogue, Robert M. Soldofsky
Journal of Financial and Quantitative Analysis · 1969 · Volume 4 · Issue 2
Abstract
The question “What's in a bond rating?” has been asked at least since 1909 when such ratings were started in the United States. Informed persons who answer this question typically admit that ratings depend in part on readily available statistics on a firm's operations and financial condition. Examples of such statistics are earnings coverage, leverage ratios, and profit rates.
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