Question

Explain how the bond rate can be used for analysing business performance.

Answer 1

The bond rating is allotted based on financial performance, expected earning potential and other management related aspects of the organization. The bond rating means the quality of management, resources, and management of the organization. A not too bad bond rating indicate sound financial position of the bond issuing organization and a poor bond rating indicates the poor financial quality and poor potential so bond rating can be utilized to investigate the financial execution of the organization since credit rating is moreover established on financial assessment of the organization and rating can be utilized a proportion of financial execution.