Rating Events Clause Samples
A Rating Events clause defines the consequences and procedures that apply when a party's credit rating is downgraded or otherwise affected by a credit rating agency. Typically, this clause outlines what constitutes a rating event, such as a drop below a specified credit rating threshold, and details the actions that must be taken, which may include providing additional collateral, early termination, or renegotiation of terms. The core function of this clause is to manage and mitigate the risk associated with changes in a party's creditworthiness, ensuring that both parties are protected if one party's financial stability is compromised.
Rating Events. (i) In the event that the short-term, unsecured and unsubordinated debt obligations of Party A (or its successor) or any Credit Support Provider from time to time in respect of Party A cease to be rated at least as high as "A-1+" by Standard & Poor's Rating Services, a division of The M▇▇▇▇▇-▇▇▇▇ Companies, Inc. (S&P) and, as a result of such cessation, the then current rating of the Series [o] Class [o] Ninth Issuer Notes is downgraded by S&P or placed under review for possible downgrade by S&P (an INITIAL S&P RATING EVENT), then Party A will, within 30 days of the occurrence of such Initial S&P Rating Event, at its own cost either:
(A) put in place an appropriate m▇▇▇-to-market collateral arrangement, (which may be based on the credit support documentation published by the International Swaps and Derivatives, Inc. (ISDA), or otherwise, and relates to collateral in the form of cash or securities or both) in support of Party A's obligations under this Agreement on terms satisfactory to the Issuer Security Trustee (whose consent shall be given if S&P confirms that the provision of such collateral would maintain the rating of the Series [o] Class [o] Ninth Issuer Notes by S&P or restore the rating of the Series [o] Class [o] Ninth Issuer Notes by S&P to the level it would have been at immediately prior to such Initial S&P Rating Event) provided that (1) Party A shall be deemed to have satisfied the requirements of S&P if the amount of collateral agreed to be provided in the form of cash and/or securities (the COLLATERAL AMOUNT) is determined on a basis which satisfies, but is no more onerous than, the criteria set out in the most recent article published by S&P on "Ratings Direct" which enables entities rated lower than a specified level to participate in structured finance transactions which, through collateralisation are rated at a higher level (the S&P CRITERIA) and (2) the Collateral Amount shall not be required to exceed such amount as would be required (in accordance with the S&P Criteria) to maintain or restore the rating of the Series [o] Class [o] Ninth Issuer Notes by S&P at or to the level they would have been at immediately prior to such Initial S&P Rating Event;
(B) transfer all of its rights and obligations under this Agreement to a replacement third party whose short-term, unsecured and unsubordinated debt obligations are rated at least "A-1+" by S&P or such other rating as is commensurate with the rating assigned to the Series [o] Class [o] N...
Rating Events. (i) ▇▇▇▇▇’▇ Rating Event First Rating Trigger Collateral. It shall constitute an Additional Termination Event in respect of which Party A shall be the sole Affected Party if Party A fails to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex and either
(A) the First Rating Trigger Requirements apply but the Second Rating Trigger Requirements do not apply or (B) less than 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply. (i) and (iii) of Part 5(o) (Calculations) below apply) and which remains capable of becoming legally binding upon acceptance. So long as the Second Rating Trigger Requirements apply, Party A will at its own cost use commercially reasonable efforts to, as soon as reasonably practicable, procure either (A) an Eligible Guarantee in respect of all of Party A’s present and future obligations under this Agreement is provided by a guarantor with the First Trigger Required Ratings and/or the Second Trigger Required Ratings or (B) a transfer in accordance with Part 5(r) (Transfer) below.
Rating Events. (I) DBRS Rating Events
(1) Initial DBRS Rating Event Event”) then Party A will, as soon as practicable, but in any event no later than within 30 Local Business Days of the occurrence of such Initial DBRS Rating Event, at its own cost, either:
(a) transfer collateral in accordance with the provisions of the Credit Support Annex; or
(b) subject to Part 5(e) (Transfers), transfer all of its rights and obligations under this Agreement to a First Threshold DBRS Compliant Entity; or
(c) procure an entity with a Long-Term DBRS Rating of at least as high as “A” to provide a DBRS Eligible Guarantee in respect of the obligations of Party A under this Agreement; or
(d) take such other action (which may, for the avoidance of doubt, include taking no action) as will result in the rating of the Relevant Notes by DBRS following the taking of such action being maintained at, or restored to, the level at which it was immediately prior to such Initial DBRS Rating Event. If any of the measures described in paragraphs (b), (c) or (d) of this Part 5(d)(I)(1) are satisfied at any time, Party A will not be required to transfer any collateral in respect of such Initial DBRS Rating Event pursuant to paragraph (a) of this Part 5(d)(I)(1). If, at any time following the occurrence of an Initial DBRS Rating Event, the Long-Term DBRS Rating of Party A (or the Credit Support Provider in respect of Party A) is at least as high as “A”, Party A shall not be under an obligation to comply with the provisions of Part 5(d)(I)(1) (a), (b), (c) and (d), unless another Initial DBRS Rating Event occurs.
Rating Events. ▇▇▇▇▇'▇ Rating Event
(i) First Rating Trigger Collateral. It shall constitute an Additional Termination Event in respect of which Party A shall be the sole Affected Party with all Transactions (other than, if a Notice Date has occurred, SVR Transactions) as Affected Transactions if Party A fails to comply with or perform any obligation to be complied with or performed by Party A in accordance with the attached Credit Support Annex and either (A) the First Rating Trigger Requirements apply but the Second Rating Trigger Requirements do not apply or (B) less than 30 Local Business Days have elapsed since the last time the Second Rating Trigger Requirements did not apply.
Rating Events. (i) S&P Rating Events
Rating Events. (I) ▇▇▇▇▇’▇ Rating Events
Rating Events