FINANCE|financing and investment
- meathlú creidmheasa Reference Faomhadh an téarma seo mar chuid de Thionscadal Lex
- ga
- credit deterioration
- en
- Definition weakening of a company’s financial condition, measured by its credit risk, as a result of a catalyst event such as a violation of a key covenant in its banking facilities, the inability to refinance its existing bank or bond facilities, insufficient capital to complete its business plan, impending credit agency downgrades, or reduction in corporate distributions or dividends Reference Stornoway Portfolio Management. Credit Deterioration. http://www.stornowayportfolio.com/Pages/srfstrategiescredit.html [15.6.2011]
- Comment These catalyst events may trigger the market’s perception of the company’s increased credit risk profile, and therefore cause the market to re-value the company’s debt and equity securities.