Minimum Debt Rating Clause Samples

The Minimum Debt Rating clause sets a required threshold for the credit rating of a party’s outstanding debt, typically as determined by recognized rating agencies. In practice, this clause may require a borrower or issuer to maintain at least a specified rating (such as BBB or higher) throughout the term of a loan or bond agreement. If the rating falls below the minimum, it can trigger consequences like increased interest rates, additional collateral requirements, or even an event of default. The core function of this clause is to protect lenders or investors by ensuring the ongoing creditworthiness of the counterparty, thereby managing risk and providing early warning of financial deterioration.
Minimum Debt Rating. Maintain at all times a Debt Rating (in the case of Borrower only) equal to (or better than) Baa3 or BBB-. For purposes of this Section 5.11, if the prevailing Debt Ratings as of any date of determination are “split ratings”, the lower/lowest Debt Rating shall apply.
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Minimum Debt Rating. Borrowers shall have delivered to Agent evidence, in form and substance reasonably satisfactory to Agent and the Banks, that Res-Care has obtained a senior secured debt rating of (a) Ba3 or better from Moody's, and (b) BB- or better from Standard & Poor's.
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Related to Minimum Debt Rating

  • Debt Rating The Liquidity Provider has a short-term debt ratings of “P-1” from ▇▇▇▇▇’▇ and “F1+” from Fitch.

  • Debt Ratings Prompt notice of any change in its Debt Ratings.

  • PRIORITY RATING If so identified, this Contract is a "rated order" certified for national defense, emergency preparedness, and energy program use, and SELLER shall follow all the requirements of the Defense Priorities and Allocation System Regulation (15 C.F.R. Part 700).

  • Minimum Debt Service Coverage Ratio Commencing September 30, 2025, and as of the last day of each calendar quarter thereafter, the Borrowers will not permit the Debt Service Coverage Ratio to be less than 1.25 to 1.00.

  • Credit Rating With respect to the Competitive Supplier or Competitive Supplier’s Guarantor, its senior unsecured, unsubordinated long-term debt rating, not supported by third party credit enhancement, and if such debt is no longer rated, then the corporate or long-term issuer rating of Competitive Supplier or Competitive Supplier’s Guarantor.