To determine a bond's rating, a credit rating agency will analyze the accounts of the issuer and the legal agreements attached to the bond to produce what is effectively a forecast of the bond's chance of default, expected loss, or a similar metric.
A credit rating agency will analyze the accounts of the issuer. This was to determine a bond's rating. A credit rating agency will analyze the accounts of the legal agreements attached to the bond to produce what is effectively a forecast of the bond's chance of default, expected loss, or a similar metric. This was to determine a bond's rating.