Common use of S&P Collateralization Event Clause in Contracts

S&P Collateralization Event. It shall be a collateralization event if either (A) the unsecured, short-term debt obligations of the Relevant Entity are rated below “A-1” by S&P or (B) if the Relevant Entity does not have a short-term rating from S&P, the unsecured, long-term senior debt obligations of a Relevant Entity are rated below “A” by S&P (“S&P Collateralization Event”). For the avoidance of doubt, the parties hereby acknowledge and agree that notwithstanding the occurrence of an S&P Collateralization Event, this Agreement and each Transaction hereunder shall continue to be a Swap Agreement for purposes of the Transaction Documents.

S&P Collateralization Event. It is acknowledged and agreed by the parties hereto that this paragraph applies only to a party to this Agreement that is a Financial Institution, as defined herein. It shall be a collateralization event if either (A) the unsecured, short-term debt obligations of the Relevant Entity are rated below “A-1” by S&P or (B) if the Relevant Entity does not have a short-term rating from S&P, the unsecured, long-term senior debt obligations of a Relevant Entity are rated below “AA+” by S&P (“S&P Collateralization Event”). For the avoidance of doubt, the parties hereby acknowledge and agree that notwithstanding the occurrence of an S&P Collateralization Event, this Agreement and each Transaction hereunder shall continue to be a Swap Agreement for purposes of the Transaction Documents.