Reference Obligation Relevant Rating Clause Samples
The 'Reference Obligation Relevant Rating' clause defines the requirement that a specified financial instrument (the reference obligation) must possess a certain credit rating from a recognized rating agency. In practice, this clause ensures that only obligations meeting a minimum credit quality are considered valid for the purposes of the contract, such as in credit derivatives or structured finance agreements. By setting this standard, the clause helps manage credit risk and ensures that the underlying asset maintains a level of reliability, thereby protecting parties from exposure to lower-quality or downgraded obligations.
Reference Obligation Relevant Rating. The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate The rating by S&P that is two rating subcategories above the rating assigned by S&P to the other obligation The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate The rating by S&P that is one rating subcategory above the rating assigned by S&P to the other obligation The Reference Obligation is Subordinate The rating assigned by S&P to the other obligation
Reference Obligation Relevant Rating. The Reference Obligation is a secured obligation, but is not a Second Lien Obligation and is not Subordinate The rating by Moody’s that is two rating subcategories above the rating assigned by Moody’s to the other obligation The Reference Obligation is an unsecured obligation or is a Second Lien Obligation, but is not Subordinate The rating by Moody’s that is one rating subcategory above the rating assigned by Moody’s to the other obligation The Reference Obligation is Subordinate The rating assigned by Moody’s to the other obligation