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"With corporate borrowing costs about as low as they can be it makes sense for Google to grab some cheap money, even though it has some $50bn in the bank or in short-term investments.

It also means the company can build a reputation among bond investors in order to raise more money in the future."

-- http://www.theregister.co.uk/2011/05/17/google_bond_sale/

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That makes no sense. If in the future Google’s fate should change such that the company becomes desperate for cash, no one will care about Google’s past good credit score. Bonds are always rated on future expectations.

Need to raise money != desperate for cash

That desperation example should’ve been downplayed. The main point is that bond rating is largely independent of a company’s reputation in handling past debts; investors are primarily concerned with the company’s future ability to honor their newly issued bonds.

Actually, investor and rating agency decisions are influenced by their history with the company. So it can make sense to "introduce" a company to the debt markets before it has an actual need for the capital.

I’ve been told that this comment of mine was overly naïve and idealistic and that such deals aren’t unheard of. My cynical side still views such deals as corporate politics that primarily benefit the individuals involved.

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