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To earn a high rating from the bond rating agencies, a company would want to have:

1) A low times-interest-earned ratio
2) A low debt-to-equity ratio
3) A high quick ratio

User SheerSt
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Final answer:

To achieve a high bond rating, a company should aim for a low debt-to-equity ratio and high quick ratio, which indicate financial stability and the ability to meet short-term obligations, respectively.

Step-by-step explanation:

To earn a high rating from bond rating agencies, a company would want to have several characteristics that indicate good financial health and lower risk to bondholders. One key indicator is a low debt-to-equity ratio, which suggests the company is not overburdened by debt compared to its equity, making it less risky. Another important factor is a high quick ratio, also known as the acid test ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets; a higher ratio means the company is more able to quickly generate cash to cover its debts. Lastly, a company would prefer not to have a low times-interest-earned ratio. This ratio measures how easily a company can pay interest on its debt, and a higher ratio indicates stronger financial health as it denotes the company can comfortably meet its interest payments.

User Cmorrissey
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