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Which One of These Statements Regarding Corporate Bond Credit Ratings

Question 33

Multiple Choice

Which one of these statements regarding corporate bond credit ratings is correct?


A) Bonds rated Ba3 or above by Moody's are considered investment-grade bonds.
B) All bonds issued by the same issuer will have the same credit rating.
C) A bond's credit spread may be a better indicator of a bond's risk than its rating.
D) Bond ratings are based solely on the seniority of the bond issue and the protective covenants by which it is covered.
E) Credit ratings are assigned to the bond issuer, not the bond issue.

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