Ratings trigger: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Qualify 'will trigger' to 'might trigger'.) |
imported>Doug Williamson (Layout.) |
||
Line 1: | Line 1: | ||
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. | |||
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.