rating trigger

rating trigger definition - business

rating trigger

A provision in a loan agreement that initiates a specific action in the event of a change in a firm's credit rating. For example, a downgrade in a firm's credit rating may set off accelerated debt repayment in a backup credit line.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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