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If the debt was unsecured, the credit rating of the firm would likely be lower compared to secured debt. This is because unsecured debt is

If the debt was unsecured, the credit rating of the firm would likely be lower compared to secured debt. This is because unsecured debt is not backed by any specific assets, making it riskier for lenders. As a result, lenders would demand a higher interest rate to compensate for the increased risk.

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