Indonesia Conference Directory

Bond ratings have significance for both companies and investors. Because bond ratings are an indicator of default risk. Bond ratings are influenced by various factors, namely financial ratios and non-financial factors. The purpose of this study to determine the effect of financial performance (liquidity, profitability and solvency) on bond ratings and the influence of interest rates on the influence of financial performance (liquidity, profitability and solvency) of the bond rating. This study uses a quantitative approach and data collection methods using documentation methods. The sample is a banking company that issues bonds. The sampling technique using purposive sampling method, obtained 14 company samples. Data analysis uses Partial Last Square. The results of this study indicate that liquidity does not affect the bond rating. Profitability and solvency affect the bond rating. Interest rates have no effect on bond ratings and interest rates have no effect and cannot strengthen or weaken the effect of financial performance (liquidity, profitability and solvency) on bond ratings.