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Basic Question 3 of 3
Which statement is false?
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.
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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Learning Outcome Statements
describe the uses of ratings from credit rating agencies and their limitations
CFA® 2025 Level I Curriculum, Volume 4, Module 14.