Ratings Event I Clause Samples
The "Ratings Event I" clause defines a specific situation in which a change in the credit rating of a party or instrument triggers certain contractual consequences. Typically, this clause outlines what constitutes a ratings event, such as a downgrade by a recognized credit rating agency below a specified threshold, and details the actions that must be taken if such an event occurs, like providing notice or adjusting terms. Its core practical function is to allocate risk and protect parties from increased credit risk by allowing for predefined responses to adverse changes in creditworthiness.
Ratings Event I. A. Actions upon Ratings Event 1: Not later than 30 calendar days after a Ratings Event I has occurred and is continuing, ▇▇▇▇▇▇ shall, at its own expense:
(A) provide, or cause to be provided, an Eligible Guarantee to Counterparty in respect of all ▇▇▇▇▇▇’▇ present and future obligations under this Agreement; or
(B) transfer ▇▇▇▇▇▇’▇ rights and obligations under the Agreement and all Confirmations pursuant to a Qualifying Novation; or
(C) deliver Eligible Collateral to Counterparty in accordance with the terms of the Approved Credit Support Document and, following such delivery, maintain Eligible Collateral as required under the Approved Credit Support Document; ▇▇▇▇▇▇’▇ obligations under this Part 6(1)(I) shall cease, solely with respect to such occurrence, if (A) there is no Ratings Event I or (B) ▇▇▇▇▇▇ has either provided an Eligible Guarantee in respect of all ▇▇▇▇▇▇’▇ present and future obligations under this Agreement or transferred its rights and obligations pursuant to a Qualifying Novation in accordance with the terms of this Schedule.
Ratings Event I. A. Actions upon Ratings Event 1: Not later than:
(i) 30 calendar days in the case of a Ratings Event I with respect to ▇▇▇▇▇’▇ only; and
(ii) ten Business Days in the case of a Ratings Event I with respect to S&P: after a Ratings Event I has occurred and is continuing, ▇▇▇▇▇▇ shall, at its own expense deliver Eligible Collateral to Counterparty in accordance with the terms of the Approved Credit Support Document and, following such delivery, maintain Eligible Collateral as required under the Approved Credit Support Document; ▇▇▇▇▇▇’▇ obligations under this Part 6(1)(I) shall cease, solely with respect to such occurrence, if (A) there is no Ratings Event I or (B) ▇▇▇▇▇▇ has, at its own expense, either provided an Eligible Guarantee in respect of all ▇▇▇▇▇▇’▇ present and future obligations under this Agreement or transferred its rights and obligations pursuant to a Qualifying Novation in accordance with the terms of this Schedule.
Ratings Event I. A. Actions upon Ratings Event 1: Not later than:
(i) 30 calendar days in the case of a Ratings Event I with respect to M▇▇▇▇’▇ only; and
(ii) ten Business Days in the case of a Ratings Event I with respect to S&P: deliver Eligible Collateral to Counterparty in accordance with the terms of the Approved Credit Support Document and, following such delivery, maintain Eligible Collateral as required under the Approved Credit Support Document; M▇▇▇▇▇’▇ obligations under this Part 6(1)(I) shall cease, solely with respect to such occurrence, if (A) there is no Ratings Event I or (B) M▇▇▇▇▇ has, at its own expense, either provided an Eligible Guarantee in respect of all M▇▇▇▇▇’▇ present and future obligations under this Agreement or transferred its rights and obligations pursuant to a Qualifying Novation in accordance with the terms of this Schedule.
Ratings Event I