Interest cap and Pricing grid: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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''Tax - anti-avoidance''.
A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.


Limits on corporate tax relief for interest and amounts economically equivalent to interest.
Also known as a 'ratchet'.




Do not confuse with an interest ''rate'' cap, which is a hedging instrument to manage interest rate risk.
== See also ==
* [[Credit rating]]
* [[Ratings trigger]]
* [[Rating grid]]


 
[[Category:Treasury_operations_infrastructure]]
==See also==
* [[Corporate Interest Restriction]]
* [[Debt cap]]
* [[Fixed ratio method]]
* [[Interest rate cap]]
* [[Tax avoidance]]
* [[Tax relief]]
* [[Worldwide interest cap]]

Revision as of 16:34, 25 July 2015

A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.

Also known as a 'ratchet'.


See also