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On Bond Ratings and Pension Obligations: A Note

Published online by Cambridge University Press:  01 December 2009

Linda J. Martin  and
Glenn V. Henderson Jr.
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Extract

Financial analysts have been intrigued by bond ratings since John Moody first started publishing them in 1909. Bond ratings are assigned by three agencies (Moody's, Standard and Poor's (S&P), and Fitch); these ratings are widely publicized and are, therefore, critically important. A bond's rating affects investors' purchase decisions and, consequently, the issuing firm's cost of debt and, indirectly, its cost of equity.

Information

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 18 , Issue 4 , December 1983 , pp. 463 - 470
Copyright
Copyright © School of Business Administration, University of Washington 1983

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