Ratings trigger: Difference between revisions

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A clause in loan documentation which changes the obligations of the borrower, in the event of a change in credit rating.
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.




== See also ==
== See also ==
* [[Acceleration]]
* [[Credit rating]]
* [[Credit rating]]
* [[Pricing grid]]
* [[Pricing grid]]


[[Category:Treasury_operations_infrastructure]]
[[Category:Treasury_operations_infrastructure]]
[[Category:Treasury_operations_infrastructure]]

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.


See also