Answer:
Increase
Explanation:
Bonds refer to medium of raising long term finance whereby the issuer agrees to pay periodic coupon payments and principal repayment upon maturity to the lenders.
Bond ratings convey the credit risk a bond carries. For instance, AAA rating is considered to be the best rating followed by AA, etc. Such ratings depict the credit worthiness of the bond issuer.
Higher or better the credit rating, more popular the bonds would be, lesser would be the investment risk and thus more would be their demand.
In the given case, the bonds which were initially rated BBB have been upgraded to AA. This would result into an increase in the demand for such bonds.
