An improvement to a public company's credit rating where the fair value option is used will adversely affect the company's solvency ratios.

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An improvement in a public company's credit rating typically indicates a lower risk of default, which can lead to a decrease in the company's borrowing costs and potentially improve its solvency ratios, not adversely affect them. Solvency ratios measure a company's ability to meet its long-term obligations; improved creditworthiness suggests a stronger ability to do so.

An Improvement to a Public Company's Credit Rating Where the Fair