An investor is analyzing a corporate bond issued by XYZ Enterprises, which has a credit rating of BB+ assigned by a major rating agency. The investor is concerned about the potential default risk associated with this bond. In this context, the investor is considering the implications of the bond's credit spread relative to its benchmark yield and is debating the risk characteristics of different credit quality investments.
Considering the following situations, which statement best describes the relationship between the bond's credit spread and its default risk, specifically in light of the bond's current market conditions?