Ratings trigger: Difference between revisions
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imported>Doug Williamson (Qualify 'will trigger' to 'might trigger'.) |
imported>Doug Williamson (Layout.) |
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A clause in loan documentation to protect the lender against deterioration in the credit rating of the borrower. For example, a ratings trigger might stipulate that if the credit rating falls below a specified level, this event might trigger immediate repayment of the borrowing. | |||
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A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower. | |||
Latest revision as of 15:28, 13 May 2016
1.
A clause in loan documentation to protect the lender against deterioration in the credit rating of the borrower. For example, a ratings trigger might stipulate that if the credit rating falls below a specified level, this event might trigger immediate repayment of the borrowing.
2.
A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.
