- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 16. Credit Analysis for Corporate Issuers
- Subject 3. Seniority Rankings, Recovery Rates, and Credit Ratings
CFA Practice Question
Based on the practice of notching, a senior unsecured bond issued by a company with an issuer rating of BB would likely carry what rating?
B. BB
C. BBB-
A. B+
B. BB
C. BBB-
Correct Answer: B
The issuer credit rating usually applies to its senior unsecured debt. No notching is necessary.
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