Bond rating is a tool which should be checked beforehand when making a decision to invest in a certain bond. The reason for this is because bond ratings provide investors with information on the issuer’s financial strength, or its ability to pay a bond’s principal andinterest in a timely fashion. The purpose of this research is to find out the effect of financial and non-financial factor on bond rating. The independent variables used in this research are leverage, profitability, liquidity, auditor reputation, maturity.
This research has 51 samples of corporate bonds which were issued by non-financial corporations publicly traded in IDX between the year of 2011 and 2014, in which the bonds are rated by  PEFINDO. The method used in this research is the logistic regression models.
The conclusion of this research states that leverage and maturity each have significant effect on bond rating. Whereas profitability, liquidity and auditor reputation do not have any effect on bond rating.