Answer: more than those of corporations with a high credit rating.

## Explanation During periods of widening credit spreads: - **Lower-rated bonds** (high-yield/junk bonds) experience **larger spread widening** than higher-rated bonds - This is because lower-rated companies have: - Higher default risk - Less financial flexibility - Greater sensitivity to economic downturns - Investors demand higher compensation for taking on additional risk during uncertain economic times - The "flight to quality" phenomenon causes investors to move from lower-rated to higher-rated bonds, further widening spreads on lower-rated issues Therefore, credit spreads on bonds with low credit ratings widen more than those with high credit ratings.

Author: LeetQuiz Editorial Team