One of the disadvantages of commercial paper is that if the company's credit quality declines,the issuance of additional paper may be impossible.

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Commercial paper is a short-term debt instrument issued by companies with high credit ratings. If the credit quality of the issuing company declines, investors may be reluctant to purchase additional commercial paper from that company, making it difficult or impossible for the company to issue more paper to raise funds.

One of the Disadvantages of Commercial Paper Is That If