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Basic Question 3 of 3

Which statement is false?

A. The higher the credit rating, the greater the rating stability.
B. Credit spreads tend to lag behind credit ratings.
C. In a bankruptcy, junior creditors may receive more consideration than they are legally entitled to.

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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe the uses of ratings from credit rating agencies and their limitations

CFA® 2025 Level I Curriculum, Volume 4, Module 14.