Which one of these statements regarding corporate bond credit ratings is correct?

Multiple Choice

• Bonds rated Ba3 or above by Moody's are considered investment-grade bonds.

• All bonds issued by the same issuer will have the same credit rating.

• A bond's credit spread may be a better indicator of a bond's risk than its rating.

• Bond ratings are based solely on the seniority of the bond issue and the protective covenants by which it is covered.

• Credit ratings are assigned to the bond issuer, not the bond issue.