Ratings trigger

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Revision as of 13:50, 15 July 2015 by imported>Doug Williamson (Expand first definition and link with Acceleration page.)
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  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 will 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.


See also