medium · Corporate Credit Analysis ratings

An analyst at a rating agency is reviewing a 'B' rated issuer that is issuing new senior secured notes. Based on a recovery waterfall, the notes are assigned a recovery rating of '1', which corresponds to an expected recovery of 90% - 100%.

According to standard notching conventions, what is the likely issue rating for these notes?

  1. BB-
  2. B+
  3. BB+
  4. BBB-

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