单选题

Which of the following best describes the motivation for a corporation to issue an asset-backed security? Securitization of specific assets by a corporation enables the corporation to（）。

A、 avoid negative covenants of bond indentures.
B、 get a credit rating on the ABS that will result in a lower cost of borrowing.
C、 use the assets as collateral for additional borrowing.

【正确答案】 B

【答案解析】

Issuing asset-backed securities allows a corporation to dedicate the assets' cash flows to specific debt issues. This enables the issue to receive a higher credit rating than that of the corporation.