Ratings trigger: Difference between revisions
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imported>Doug Williamson (Expand first definition and link with Acceleration page.) |
imported>Doug Williamson (Qualify 'will trigger' to 'might trigger'.) |
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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 | #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. | ||
#A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower. | #A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower. | ||
Revision as of 13:53, 15 July 2015
- 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.
- A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.
