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Moody's bond ratings are based primarily on an issuer's:___________.

a. capitalization
b. expected trading volume of a bond issue
c. financial strength
d. expected marketability of a bond issue

User Sazzy
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1 Answer

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Answer:

The answer is C.

Step-by-step explanation:

Moody's bond ratings are based on financial strength of the issuer i.e its ability to pay a bond's principal and interest as and when due.

Moody's rating scale are as follows: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C.

The best rating is Aaa which is similar to Standard and Poor's, AAA.

These ratings help to know the issuer (corporation, nations etc.) that are worthy to be given bonds.

User Mohamed Desouky
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