(B)/W and Material adverse effect: Difference between pages

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(Better)/Worse.
(MAE).  


A label and sign convention in financial reporting to indicate whether positive differences are bad news - also known as 'adverse', in other words indicating that the number being compared is 'worse' than the one it's being compared with.  
A clause in a loan agreement.


It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this will constitute an event of default. 


When the label is (B)/W the positive numbers are worse than forecast, budget, prior period or other comparative number.


Under this convention, negative numbers are good news, also known as 'favourable'.
== See also ==
 
* [[Event of default]]
 
* [[Loan agreement]]
On the other hand, when the label is B/(W) the opposite applies - negative numbers would be worse and adverse.
* [[Material adverse change]]
 
* [[Adverse event]]
Under the B/(W) sign convention positive numbers are better and favourable.


 
[[Category:Bank_Lending]]
== See also ==
[[Category:Debt_Capital_Markets]]
*[[Variance]]
[[Category:Legal_Documentation]]
*[[Adverse]]
*[[YTD]]
*[[Inflow/(outflow)]]
*[[Mostly positive]]
*[[Variance analysis]]

Revision as of 07:35, 5 July 2014

(MAE).

A clause in a loan agreement.

It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this will constitute an event of default.


See also

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