answersLogoWhite

0


Best Answer

to help investorsto help investors determine the likelihood of debt repayment a+

User Avatar

Wiki User

7y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why are bonds evaluated by rating agencies?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Will a bonds yield to maturity increase or decrease if the bond is downgraded by the rating agencies?

Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.


How do you find a company's public debt rating?

Rating agencies


Is there a rating service for travel nurse agencies?

It sure is a rating service. The one I found for you is at; www.americantraveler.com/best-travel-nurse-agencies/ .


What is the meaning of high yield corporate bonds?

High yield corporate bonds are issued by organizations that do not qualify for investment-grade ratings by credit rating agencies. These bonds are sold to raise capital for various purposes. The issuer agrees to pay interest and also return the face value of the bond.


What is the key purpose of credit rating agencies?

The key purpose of credit rating agencies is to assign a rating to businesses and entities that issue certain types of debt. These rating help to determine the credit worthiness of these establishments.


What is the likelihood that a given aggressor will attempt to compromise an asset is evaluated?

likelihood rating


How many credit rating agency in India?

there are 7 credit rating agencies in INDIA


Which is the Regulator of the credit rating agencies in India?

SEBI


Details about credit rating?

A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by credit rating agency of the debt issuers likelihood of default Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations.


What are standard and poor's and moody's?

They are based on current information furnished by the insurance company or obtained by S& P from sources it considers reliable.


How good are the aaa corporate bonds?

Bonds that are designated 'AAA' are bonds that have been reviewed by a credit rating agency and found to be of the highest quality. Moody's and Standard and Poor are both reputable rating firms.


Who is responsible for issuing municiple bonds?

Municipal bonds are issued by local governments (town/village, city, county), agencies of the local government, or quasi-independent agencies of the local government.