Ratings trigger: Difference between revisions
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imported>Doug Williamson (Align item 1. with course material to tighten scope) |
imported>Doug Williamson (Expand first definition and link with Acceleration page.) |
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#A clause in loan documentation to protect the lender against deterioration in the credit rating of the borrower. For example if the credit rating falls below a specified level, this | #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. | ||
#A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower. | #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]] |
Revision as of 13:50, 15 July 2015
- 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.
- A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.