This section groups practical credit and lending entries about rating actions and notching. It keeps related loan, collateral, borrower, repayment, and debt-market concepts together instead of leaving them in an oversized parent bucket.
Use these entries as quick reference points before moving across the surrounding credit, lending, collateral, receivables, or debt-resolution sections.
In this section
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Credit Downgrade
A credit downgrade refers to the reduction in the credit rating of a bond, which signifies increased perceived default risk.
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Credit Watch
Credit Watch is a term used by bond rating agencies to indicate that a company's credit rating is under review and subject to potential change, generally with the implication of a downgrade due to adverse events affecting its income statement or balance sheet.
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Notching in Credit Rating Agencies
A comprehensive overview of notching debt, its significance, Moody's guidelines, and its impact on credit ratings issued by agencies.