In credit analysis, understanding the different aspects of credit risk measurement is crucial for assessing the likelihood of default and the potential loss given default. One common method used to measure credit risk is the calculation of the Credit Spread. A Credit Spread is the difference between the yield of a corporate bond and the yield of a risk-free government bond. It reflects the risk premium that investors demand for taking on additional credit risk.

Which of the following statements about Credit Spreads is true?