Below Investment Grade Rating Event definition: Copy, customize, and use instantly
Introduction
The term "Below Investment Grade Rating Event" refers to a situation where a financial entity or instrument is downgraded by a credit rating agency to a rating below investment grade, typically below 'BBB-' by S&P or 'Baa3' by Moody's. This event can trigger certain clauses in contracts, such as penalties, changes in interest rates, or other financial adjustments. Understanding this term is essential for managing credit risk and ensuring that financial agreements include provisions to address the risks associated with such downgrades.
Below are various examples of how "Below Investment Grade Rating Event" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Below Investment Grade Rating Event" in a loan agreement
This definition ties "Below Investment Grade Rating Event" to loan agreements.
"Below Investment Grade Rating Event" refers to the occurrence of a downgrade of the borrower’s credit rating to a rating below investment grade by any of the major credit rating agencies, including but not limited to S&P, Moody’s, or Fitch.
Definition of "Below Investment Grade Rating Event" in a bond indenture
This definition connects "Below Investment Grade Rating Event" to bond indentures.
"Below Investment Grade Rating Event" means the downgrade of the bond issuer’s credit rating to below investment grade, as defined by any major rating agency, which triggers certain rights or penalties under the bond indenture.
Definition of "Below Investment Grade Rating Event" in a credit agreement
This definition links "Below Investment Grade Rating Event" to credit agreements.
"Below Investment Grade Rating Event" refers to an event in which the borrower’s credit rating is downgraded to below investment grade, leading to a potential adjustment in the terms of the credit agreement.
Definition of "Below Investment Grade Rating Event" in a derivative contract
This definition applies "Below Investment Grade Rating Event" to derivative contracts.
"Below Investment Grade Rating Event" occurs when the credit rating of a counterparty falls below investment grade, which could lead to adjustments in margin requirements or trigger a default event.
Definition of "Below Investment Grade Rating Event" in a syndicated loan agreement
This definition connects "Below Investment Grade Rating Event" to syndicated loan agreements.
"Below Investment Grade Rating Event" refers to the downgrade of the borrower’s credit rating below the level of investment grade, which may affect the syndicate's obligations or loan terms.
Definition of "Below Investment Grade Rating Event" in a partnership agreement
This definition ties "Below Investment Grade Rating Event" to partnership agreements.
"Below Investment Grade Rating Event" means the occurrence of a downgrade to below investment grade of the partner’s credit rating, which may trigger specific actions or changes to the partnership's financial terms.
Definition of "Below Investment Grade Rating Event" in a master loan agreement
This definition applies "Below Investment Grade Rating Event" to master loan agreements.
"Below Investment Grade Rating Event" refers to a situation where the borrower’s rating falls below investment grade, triggering rights for the lender to call for accelerated repayment or adjust terms under the master loan agreement.
Definition of "Below Investment Grade Rating Event" in a private placement agreement
This definition connects "Below Investment Grade Rating Event" to private placement agreements.
"Below Investment Grade Rating Event" occurs when the issuer’s credit rating is downgraded below the investment grade threshold, triggering the application of default provisions in the private placement agreement.
Definition of "Below Investment Grade Rating Event" in a revolving credit facility
This definition links "Below Investment Grade Rating Event" to revolving credit facilities.
"Below Investment Grade Rating Event" means the downgrade of the borrower’s credit rating to a level below investment grade, which could result in an increase in the interest rate or other adjustments to the revolving credit facility.
Definition of "Below Investment Grade Rating Event" in a structured finance transaction
This definition applies "Below Investment Grade Rating Event" to structured finance transactions.
"Below Investment Grade Rating Event" refers to the downgrade of the underlying asset’s credit rating to below investment grade, which may trigger the revaluation of securities or adjustments to transaction terms.
Definition of "Below Investment Grade Rating Event" in a securitization agreement
This definition ties "Below Investment Grade Rating Event" to securitization agreements.
"Below Investment Grade Rating Event" occurs when the rating of the underlying securities is downgraded to below investment grade, potentially affecting the terms and structure of the securitization.
Definition of "Below Investment Grade Rating Event" in a swap agreement
This definition links "Below Investment Grade Rating Event" to swap agreements.
"Below Investment Grade Rating Event" refers to a downgrade of a party’s credit rating to below investment grade, which could trigger collateral requirements or other changes to the swap agreement.
Definition of "Below Investment Grade Rating Event" in an equity investment agreement
This definition connects "Below Investment Grade Rating Event" to equity investment agreements.
"Below Investment Grade Rating Event" means a downgrade of the issuing company’s credit rating to below investment grade, which could trigger buyout provisions or other clauses in the equity investment agreement.
Definition of "Below Investment Grade Rating Event" in a credit default swap (CDS) agreement
This definition ties "Below Investment Grade Rating Event" to CDS agreements.
"Below Investment Grade Rating Event" occurs when the reference entity’s credit rating is downgraded below investment grade, which may trigger a credit event under the CDS contract.
Definition of "Below Investment Grade Rating Event" in a commercial loan agreement
This definition applies "Below Investment Grade Rating Event" to commercial loan agreements.
"Below Investment Grade Rating Event" refers to the downgrade of the borrower’s credit rating to below investment grade, which could result in a re-evaluation of the commercial loan terms or trigger an event of default.
Definition of "Below Investment Grade Rating Event" in an asset-backed loan agreement
This definition links "Below Investment Grade Rating Event" to asset-backed loan agreements.
"Below Investment Grade Rating Event" means the downgrade of the credit rating of the underlying asset or borrower to below investment grade, which may affect the terms or collateral requirements under the loan.
Definition of "Below Investment Grade Rating Event" in a real estate financing agreement
This definition connects "Below Investment Grade Rating Event" to real estate financing agreements.
"Below Investment Grade Rating Event" refers to a downgrade of the borrower’s credit rating to below investment grade, which could trigger an interest rate adjustment or other penalties in the real estate financing agreement.
Definition of "Below Investment Grade Rating Event" in an intercompany loan agreement
This definition ties "Below Investment Grade Rating Event" to intercompany loan agreements.
"Below Investment Grade Rating Event" refers to the downgrade of a group company’s credit rating to below investment grade, triggering a re-evaluation of intercompany loan terms and repayment conditions.
Definition of "Below Investment Grade Rating Event" in a hybrid financing agreement
This definition links "Below Investment Grade Rating Event" to hybrid financing agreements.
"Below Investment Grade Rating Event" occurs when the credit rating of the issuer falls below investment grade, which may trigger changes to the hybrid financing terms or result in additional covenants being applied.
Definition of "Below Investment Grade Rating Event" in a shareholder agreement
This definition applies "Below Investment Grade Rating Event" to shareholder agreements.
"Below Investment Grade Rating Event" means the downgrade of the issuer's credit rating to below investment grade, which may trigger the application of specific rights or obligations under the shareholder agreement.
Definition of "Below Investment Grade Rating Event" in a financial covenant
This definition ties "Below Investment Grade Rating Event" to financial covenants.
"Below Investment Grade Rating Event" refers to the event when the issuer’s credit rating is downgraded to below investment grade, potentially triggering a breach of financial covenants and requiring corrective actions.
Definition of "Below Investment Grade Rating Event" in a pricing supplement
This definition connects "Below Investment Grade Rating Event" to pricing supplements.
"Below Investment Grade Rating Event" occurs when the rating of the issuer’s debt securities is downgraded to below investment grade, leading to adjustments in the pricing terms as outlined in the pricing supplement.
Definition of "Below Investment Grade Rating Event" in a term loan agreement
This definition links "Below Investment Grade Rating Event" to term loan agreements.
"Below Investment Grade Rating Event" means a downgrade of the borrower’s credit rating to below investment grade, which could result in an increase in the interest rate or trigger other penalties under the term loan agreement.
Definition of "Below Investment Grade Rating Event" in a collateralized debt obligation (CDO)
This definition ties "Below Investment Grade Rating Event" to CDOs.
"Below Investment Grade Rating Event" refers to the downgrade of the underlying assets in a CDO to below investment grade, which may affect the CDO's value or the ability to meet obligations.
Definition of "Below Investment Grade Rating Event" in a subscription agreement
This definition connects "Below Investment Grade Rating Event" to subscription agreements.
"Below Investment Grade Rating Event" refers to the occurrence of a downgrade to below investment grade of the issuing entity’s credit rating, which could trigger certain clauses within the subscription agreement.
Definition of "Below Investment Grade Rating Event" in a forward purchase agreement
This definition applies "Below Investment Grade Rating Event" to forward purchase agreements.
"Below Investment Grade Rating Event" refers to the downgrade of the credit rating of the party involved in the forward purchase agreement to below investment grade, which may lead to a renegotiation of terms.
Definition of "Below Investment Grade Rating Event" in a financial transaction
This definition ties "Below Investment Grade Rating Event" to a financial transaction.
"Below Investment Grade Rating Event" means an event where the borrower’s credit rating falls below investment grade, triggering certain financial obligations or restrictions as outlined in the agreement.
Definition of "Below Investment Grade Rating Event" in a bond issuance
This definition connects "Below Investment Grade Rating Event" to bond issuances.
"Below Investment Grade Rating Event" refers to a situation in which the rating of the issuer's bonds drops below the investment-grade threshold, affecting the bond’s terms and conditions.
Definition of "Below Investment Grade Rating Event" in a loan agreement
This definition links "Below Investment Grade Rating Event" to a loan agreement.
"Below Investment Grade Rating Event" means the event where the borrower’s credit rating is downgraded to a level below investment grade, resulting in an automatic increase in the interest rate or other penalties as specified in the loan agreement.
Definition of "Below Investment Grade Rating Event" in a credit facility
This definition applies "Below Investment Grade Rating Event" to a credit facility.
"Below Investment Grade Rating Event" refers to an occurrence where the borrower’s rating is downgraded to below investment grade, triggering a re-evaluation of the terms and a potential requirement for collateral.
Definition of "Below Investment Grade Rating Event" in a structured finance transaction
This definition ties "Below Investment Grade Rating Event" to structured finance transactions.
"Below Investment Grade Rating Event" means an event in which the credit rating of the issuer falls below the investment grade threshold, leading to potential acceleration or other changes in the financial terms of the transaction.
Definition of "Below Investment Grade Rating Event" in a syndicated loan
This definition connects "Below Investment Grade Rating Event" to a syndicated loan.
"Below Investment Grade Rating Event" refers to the downgrade of the borrower’s credit rating to below investment grade, which may trigger specific covenants, penalties, or the requirement for immediate repayment in the syndicated loan agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.