Credit event

1.

An event defined in a credit derivative agreement evidencing a weakening of the creditworthiness of a borrower and triggering obligations under the credit derivative contract.

2.

Any event evidencing a weakening of creditworthiness. For example, failing to pay interest or capital under a loan agreement, or any other event of default under a loan agreement.

See also

• Credit derivative
• Creditworthiness
• Default
• Event risk