imported>Doug Williamson |
imported>Doug Williamson |
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| #A formal legal agreement to take, or not to take, certain actions.
| | ''Credit risk evaluation - banking'' |
| #In loan documentation, a promise given by the borrower to take, or not to take, specified actions relevant to the borrower's creditworthiness.<ref>http://www.treasurers.org/node/8842</ref> For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt.
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| #In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.
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| | Exposure At Default. |
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| == See also ==
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| * [[Accounting exposure]]
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| * [[Asset cover]]
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| * [[Credit risk]]
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| * [[Event of default]]
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| * [[Financial covenant]]
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| * [[Incurrence covenant]]
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| * [[Interest cover]]
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| * [[Loan agreement]]
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| * [[Maintenance covenant]]
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| * [[Net worth]]
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| * [[Non-financial covenant]]
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| * [[Restrictive covenant]]
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| * [[Waiver]]
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| | ==See also== |
| | *[[Exposure At Default]] |
| | * [[Loss Given Default]] (LGD) |
| | * [[Probability of Default]] (PD) |
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| ==References==
| | [[Category:Accounting,_tax_and_regulation]] |
| <references/> Treasury Essentials: Covenants, The Treasurer, March 2013
| | [[Category:The_business_context]] |
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| ==Other links==
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| [http://www.treasurers.org/node/5225 Loan agreement covenant performance, Will Spinney, ACT 2009]
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| [[Category:Bank_Lending]] | |
| [[Category:Debt_Capital_Markets]]
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| [[Category:Legal_Documentation]]
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| [[Category:Credit_Risk]]
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| [[Category:Managing_Risk]] | |
