Two adverse events at the same time.
For example, a rise in interest payable on borrowings coupled with a fall in revenues.
In a typical credit cycle, as inflationary pressures rise, so central banks raise interest rates to slow demand growth.
Borrowers are therefore hit with the double-whammy of weaker demand and higher loan costs.
Kit Juckes, Head of Fixed Income Research, RBS Global Banking and Markets, The Treasurer, March 2006.