Implications of Credit Rating Downgrades

Consider a situation where XYZ Corp. issues a bond that initially receives an A- credit rating from Standard & Poor's (S&P). A few months later, XYZ Corp. faces unexpected operational challenges and the agency revises the rating to BB+. As an investor in fixed income securities, understanding credit ratings is crucial for risk assessment. In this context, which of the following statements about the implications of these credit ratings is most accurate?