An improvement in the credit quality of an issue or issuer is rewarded with a better credit rating, referred to as ________; a deterioration in the credit quality of an issue or issuer is penalized by the assignment of an inferior credit rating, referred to as ________.

Question

Quizplus · Accepted Answer

An improvement in credit quality is referred to as an upgrade, while a deterioration in credit quality is referred to as a downgrade. Therefore, option B is the correct answer. Options A, C, and D do not accurately describe the terms used for credit rating changes.

An Improvement in the Credit Quality of an Issue or Issuer