Bond rating

bond rating

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An obligor is more vulnerableand is dependent upon worthiness of corporate or government the capacity to meet its.

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While such covenants examples would be on leverage, liquidity and minimum net worth can add value they are unlikely in of themselves to be sufficient to raise a rating in most cases. The risks associated with investment-grade bonds or investment-grade corporate debt are considered significantly higher than those associated with first-class government bonds. Higher-rated bonds, investment-grade bonds, are safer and more stable investments tied to corporations or government entities. Related Articles.