An active manager is weighing an investment in the bonds of two issuers in the same industry with identical PODs using a structural credit model. Which of the following changes to the model inputs for one of the issuers would lead the analyst to expect an increase in the POD for that issuer?

A. An increase in the issuer’s coverage ratio

B. An increase in the volatility of the issuer’s stock price

C. A decrease in the issuer’s leverage ratio