A credit rating agency has just downgraded a company's credit score. How could this impact their stock price and why?

Select the correct answer.

A

The downgrade could decrease investor confidence and result in a stock price decline due to increased perceived risk

The downgrade could increase the stock price because investors see it as a buying opportunity

The downgrade would have

The downgrade could cause the stock price to become volatile as investors try to determine its impact no effect on the stock price as credit ratings and stock prices are unrelated