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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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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

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

CFA® 2024 Level I Curriculum, Volume 4, Module 14.