Which of the following statements regarding borrower-specific attributes used in a qualitative default risk model is incorrect? A borrowing firm's reputation is considered an implicit contract term that could affect its borrowing costs. B. Firms with high volatility of earnings typically are associated with higher credit risk than those with low vola tility of earnings. c. Bank loans, by regulation, are raquired to have collaterals to minimize credit risk. D. A firm's leverage ratio is positively related to its default probability of riaky debt