Based on the Moody’s KMV model which of the following is not correct?

Growth variables are important for default analysis. rapid growth will lead to lower probability of default and rapid decline will lead to higher probability of default.

Activity ratios are relevant for default analysis. A large stock of inventories relative to sales will lead to a higher probability of default.

Only Statement A is correct

Both the statements are correct

None of the statements is correct

Only Statement B is correct