CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Based on the practice of notching by the rating agencies, a junior bond issued by a company with an issuer rating of BBB would likely carry what rating?
A. BB
B. BBB
C. BB+
Explanation: The junior bond would most likely to be notched lower than the issuer rating.

User Contributed Comments 2

User Comment
nmech1984 I chose BB, why not? Isn't BB lower than B+?
Katek BB+ is higher than BB, so one notch down from BBB would be BB+ not BB
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