How Are Investors Attracted to Islamic Companies in Indonesia? Study on The Effect of Leverage, Liquidity, and Profitability on The Rating of Sukuk

The rating of Sukuk becomes the reflection of the capital markets' activities. The better rating of Sukuk, the more investor is interested in purchasing a Sukuk. This study aimed to examine the effects of leverage, liquidity, and profitability on Sukuk's rating. The technique of data analysis employed was ordinal logistic regression. The research result revealed that the leverage and liquidity affected the Sukuk. Meanwhile, the profitability did not affect the rating of Sukuk. The test result simultaneously showed that the leverage variable and liquidity affected the Sukuk rating. Overall, this study's research result supported the previous research that discovered the impacts of leverage and liquidity variables on Sukuk's rating. The implication is that companies should improve their leverage and liquidity performance to improve the bond rating.