Final answer:
A firm with a low rating from the bond rating agencies would have a low debt to equity ratio and a low quick ratio.
Step-by-step explanation:
A firm with a low rating from the bond rating agencies would have a low debt to equity ratio and a low quick ratio.
The debt to equity ratio measures the proportion of a firm's financing that comes from debt compared to equity. A low debt to equity ratio indicates that the firm has a lower level of debt, which can be seen as less risky for bondholders.
The quick ratio measures a firm's ability to pay off its short-term financial obligations using its most liquid assets. A low quick ratio suggests that the firm may have difficulty meeting its short-term obligations.