The rating agency process whereby the credit ratings on issues are moved up or down from the issuer rating best describes:
A) notching.
B) pari passu ranking.
C) cross-default provisions.

Question

Quizplus · Accepted Answer

Notching refers to the process of assigning different credit ratings to different securities or obligations of the same issuer based on their relative priority or security features. This allows investors to better understand the credit risk of each individual security.

The Rating Agency Process Whereby the Credit Ratings on Issues