What the Factors Differentiates Bond Ratings?

The purpose of this study is to look for factors that differentiate bond ratings listed on PEFINDO. This study uses 32 random samples of corporate bond ratings listed on PEFINDO, and will be analyzed using the multiple discriminant method. The results of this study are of 5 independent variables; corporate size, debt variation, net profit margin, debt to equity, and profit consistency, only 3 independent variables; debt variation, net profit margin and profit consistency that are able to differentiate the bond rating of corporates listed on PEFINDO. Based on the analysis using the Stepwise method, the net profit margin variable is the first variable used for analysis, where the net profit margin variable cannot partially distinguish the bond rating group. In the second stage, the results by using 2 variables, net profit margin and profit consistency are obtained that these two variables are able to distinguish groups of bonds ranked A and AA. Whereas when the debt variation  variable is added, then these three variables can distinguish bonds ranked AAA, AA and A.