Negative ratings do not necessarily keep issues from being successful.Rather,they raise the interest rates that issuers must offer to attract lenders.

Question

Quizplus · Accepted Answer

Negative ratings indicate higher risk for lenders, which means that issuers must offer a higher interest rate to attract lenders who are willing to take on that risk. This does not necessarily prevent the issue from being successful, as investors may still be interested in the higher returns offered by the higher interest rate.

Negative Ratings Do Not Necessarily Keep Issues from Being Successful