Split Ratings Clause Samples

The Split Ratings clause defines how to determine a party's credit rating when different rating agencies assign different ratings. In practice, this clause sets out a method for reconciling discrepancies, such as by using the lower or higher of the available ratings, or by applying a specific formula to average them. Its core function is to provide a clear and consistent approach for assessing creditworthiness, thereby reducing ambiguity and potential disputes when multiple ratings are involved.
POPULAR SAMPLE Copied 1 times
Split Ratings. In each case in which any provision of this Agreement refers to credit ratings by S&P and M▇▇▇▇’▇ (or by S&P or M▇▇▇▇’▇) and provides that such provision is subject to this Section 1.03, such provision shall be construed to mean that, in the event there is a split in the ratings by one or more ratings categories (e.g., some thing or some Person is rated BBB- by S&P and Ba3 by Moody’s), the higher rating shall be ignored.
View SourceView Similar (5)
Split Ratings. In each case in which any provision of this Agreement refers to credit ratings by S&P and ▇▇▇▇▇’▇ (or by S&P or ▇▇▇▇▇’▇) and provides that such provision is subject to this Section 1.03, such provision shall be construed to mean that, in the event there is a split in the ratings by one or more ratings categories (e.g., some thing or some Person is rated BBB- by S&P and Ba3 by ▇▇▇▇▇’▇), the higher rating shall be ignored. 13. Section 4.08(b) of the Credit Agreement is hereby amended by replacing the date “October 31, 2007” contained therein with the date “October 31, 2016”. 14. Section 5.07(d) of the Credit Agreement is hereby amended and restated in its entirety as follows:
View Source
Split Ratings. For purposes of determining the relevant Level ------------- status: (i) if at any date the rating of any senior unsecured long term debt securities by Moody's shall be higher or lower than the comparable rating by S&P by one rating level (it being understood that for these purposes an S&P rating of A+ is comparable to a ▇▇▇▇▇'▇ rating of A1, an S&P rating of A is comparable to a ▇▇▇▇▇'▇ rating of A2, and so forth), then the rating of such debt securities by each of Moody's and S&P shall be deemed to be the higher of the two ratings; and (ii) if at any date the rating of any such senior unsecured long term debt securities by Moody's shall be higher or lower than the comparable rating by S&P by two or more rating levels (it being understood that for these purposes an S&P rating of A+ is comparable to a ▇▇▇▇▇'▇ rating of A1, an S&P rating of A is comparable to a ▇▇▇▇▇'▇ rating of A2, and so forth), then the rating of such debt securities by each of Moody's and S&P shall be deemed to be the comparable S&P and Moody's ratings at the midpoint between the two actual ratings, or, if there shall be no rating at the midpoint, the next higher rating from the midpoint between the two actual ratings. For example, if such debt securities are rated BBB by S&P and Ba1 by Moody's, such debt securities shall be deemed to be rated BBB- by S&P and Baa3 by Moody's; and if such debt securities are rated BBB+ by S&P and Ba1 by Moody's, such debt securities shall be deemed to be rated BBB by S&P and Baa2 by Moody's.
View Source
Split Ratings. For purposes of determining the relevant Level ------------- Status: (i) if at any date the rating of any senior unsecured long term debt securities by Moody's shall be higher or lower than the comparable rating by S&P by one rating level (it being understood that for these purposes an S&P rating of A+ is comparable to a ▇▇▇▇▇'▇ rating of A1, an S&P rating of A is comparable to a ▇▇▇▇▇'▇ rating of A2, and so forth), then the rating of such debt securities by each of Moody's and S&P shall be deemed to be the higher of the two ratings; and (ii) if at any date the rating of any such senior unsecured long term debt securities by Moody's shall be higher or lower than the comparable rating by S&P by two or more rating levels (it being understood that for these purposes an S&P rating of A+ is comparable to a ▇▇▇▇▇'▇ rating of A1, an S&P rating of A is comparable to a ▇▇▇▇▇'▇ rating of A2, and so forth), then the rating of such debt securities by each of Moody's and S&P shall be deemed to be the rating which is one level below the higher of the two ratings.
View Source

Related to Split Ratings

  • Credit Ratings Use commercially reasonable efforts to maintain at all times (a) a credit rating by each of S&P and ▇▇▇▇▇’▇ in respect of the Term Facility and (b) a public corporate rating by S&P and a public corporate family rating by ▇▇▇▇▇’▇ for the Borrower, in each case with no requirement to maintain any specific minimum rating.

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

  • No Ratings There are no securities or preferred stock of or guaranteed by the Company or any of its subsidiaries that are rated by a “nationally recognized statistical rating organization,” as such term is defined under Section 3(a)(62) under the 1934 Act.

  • 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.

  • Ratings No “nationally recognized statistical rating organization” as such term is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company that it is considering imposing) any condition (financial or otherwise) on the Company’s retaining any rating assigned to the Company or any securities of the Company or (ii) has indicated to the Company that it is considering any of the actions described in Section 7(c)(ii) hereof.