S&P Ratings Event Clause Samples
An S&P Ratings Event clause defines the consequences or actions triggered when a security or entity's credit rating, as assigned by Standard & Poor's (S&P), is downgraded, withdrawn, or otherwise materially changed. Typically, this clause outlines specific thresholds or rating levels that, if breached, may result in obligations such as early repayment, increased interest rates, or the provision of additional collateral. For example, if a company's bond rating falls below investment grade, the clause may require the issuer to take corrective action or provide notice to investors. The core function of this clause is to protect stakeholders from increased credit risk by ensuring that material changes in creditworthiness are addressed promptly and transparently.
S&P Ratings Event. An S&P Ratings Event has occurred and is continuing and (i) Party A has failed to comply with or perform any obligation to be complied with or performed by Party A in accordance with the Credit Support Annex or (ii) at least 60 calendar days or more have elapsed since such S&P Ratings Event first occurred.
S&P Ratings Event. It shall be a ratings event if at any time after the date hereof, the Relevant Entity fails to satisfy the Hedge Counterparty Ratings Threshold or the Relevant Entity is no longer rated by S&P (“S&P Ratings Event”). Within 60 calendar days from the date an S&P Ratings Event has occurred and so long as such S&P Ratings Event is continuing, Party A shall, at its sole expense, (x) obtain an Eligible Replacement that upon satisfaction of the Rating Agency Condition, assumes the obligations of Party A under this Agreement (through an assignment and assumption agreement in form and substance reasonably satisfactory to Party B) or (y) obtain at its sole cost and expense an Eligible Guarantee from an entity that satisfies the Hedge Counterparty Rating Requirements subject to the satisfaction of the Rating Agency Condition with respect to such guaranty.
S&P Ratings Event. Party A fails to comply with the downgrade provisions as set forth in Part 5(b)(iii), after giving effect to the relevant time frame specified therein. With respect to the foregoing Additional Termination Event, Party A shall be the sole Affected Party and all Transactions shall be Affected Transactions.
S&P Ratings Event. If (A) An S&P Approved Ratings Event shall occur and be continuing, and Party A fails, as soon as reasonably practicable, at its own expense, using commercially reasonable efforts, to satisfy the conditions set forth under Collateralization Event or (B) an S&P Required Ratings Event shall occur and be continuing, and Party A fails, as soon as reasonably practicable, at its own expense, using commercially reasonable efforts, to satisfy the conditions set forth under Ratings Event, then an Additional Termination Event shall have occurred with respect to Party A and Party A shall be the sole Affected Party with respect to such Additional Termination Event.