Base rating definition

Base rating. Rating of ilAA. For the avoidance of any doubt, it is clarified that the Base Rating is the rating given to the Company's Debentures (Series D) by the Rating Agency on the date of the Debentures (Series D) Issuance. "The Additional Interest Rate": an additional interest granted to the Debenture holders at a rate of 0.25% per annum for a downgrade of one notch below the Base Rating up to a maximum additional interest of 1.25% per annum for a downgrade of 5 notches or more (hereinafter: "Maximum Additional Interest Rate Due to a Rating Downgrade").

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Base rating. An ilAA- rating (on the rating scale of Maalot). Wherever there is a reference to a rating according to Maalot’s rating scale, the intention is alternatively, to an equivalent rating of whoever shall replace it, which shall be set by a different rating company (insofar as such shall replace Maalot). “Reduced Rating” - A rating that is one rating lower than the Base Rating. “Base Interest” - The interest rate to be set at the tender, as the Company shall publish in an immediate report regarding the offering results. The interest rate that the Notes (Series C) shall bear shall not be adjusted for a decrease in the rating of the Notes (Series C) from the Initial Rating up to the Base Rating, and it shall not be adjusted for an increase in the rating of the Notes (Series C) above the Base Rating,

Base rating. An ilAA- rating (on the rating scale of Maalot). Wherever there is a reference to a rating according to Maalot’s rating scale, the intention is alternatively, to an equivalent rating of whoever shall replace it, which shall be set by a different rating company (insofar as such shall replace Maalot). “Reduced Rating” - A rating that is one rating lower than the Base Rating. “Base Interest” - The interest rate to be set at the tender, as the Company shall publish in an immediate report regarding the offering results. The interest rate that the Notes (Series D) shall bear shall not be adjusted for a decrease in the rating of the Notes (Series D) from the Initial Rating up to the Base Rating, and it shall not be adjusted for an increase in the rating of the Notes (Series D) above the Base Rating, and any such future alteration in the rating of the Notes (Series D) shall not change the interest rate that the Notes (Series D) shall bear. The interest rate that the Notes (Series D) shall bear shall be adjusted for a decrease in the rating of the Notes (Series D) below the Base Rating (a decrease of two or more grades from the Initial Rating) and for climbing up to the Base Rating, and the adjustment manner of the interest rate that the Notes (Series D) shall bear, shall be according to the below description: a. Insofar as the rating of the Notes (Series D) by the Rating Company shall be updated during any Interest Period, whereby the rating to be determined for the Notes (Series D) by the Rating Company is the Reduced Rating (as defined above), meaning a rating of ilA+ (on the rating scale of Maalot), or a lower rating, then only with respect to the period when the rating according to the Rating Company is the Reduced Rating (or lower), the annual interest rate that the outstanding Principal balance of the Notes (Series D) shall bear at an annual rate as follows (hereinafter: the “Additional Interest Rate”), above the Base Interest rate: (1) In the event the rating to be determined for the Notes (Series D) by the Rating Company shall be ilA+, the annual interest rate shall increase by an annual rate of 0.25%, whereby the annual interest shall be equal to the Base Interest, plus 0.25%.

Examples of Base rating in a sentence

• Insofar as the Debentures (Series B) shall cease being rated for a reason dependent on the Company for a period that exceeds 60 days, before the final payment, provided that the interest rate as mentioned in sub-clause (a) above was not increased, the cessation of rating shall be considered as a reduction of rating of the Debentures (Series B), to a rating lower by four levels from the Base Rating, as set forth in sub-clause (a) above.

• In the event that following the downgrading of the rating such that it affects the interest rate to be borne by the Debentures (Series D) specified in 5.2 (A) above, the Rating Agency will update the rating of the Debentures (Series D) with an upgraded rating and if the interest rate has not been increased previously with respect to deviations from the aforesaid financial covenants in Section 5.3 below, the interest rate will be reduced by notches of 0.25% per annum for each notch up to the Base Rating.

• In the event that the Buyer's A.M. Best Rating on each date on which an Annual Payment is due is other than the Base Rating, such Annual Payment shall be subject to the adjustments contained herein.

• Adjusting the interest rate for the Debentures as set forth in this clause above shall not apply in the event of a decrease of the rating of the Company below the Base Rating, that arises as a direct result of changing the rating scale of the different Rating Companies, as part of the adjustment of the local ratings to international ratings, if and insofar as relevant.

• In the event that Buyer's A.M. Best Rating is improved, the Annual Payment then due shall be increased by an amount equal to the product of (a) Two Hundred Thousand Dollars ($200,000.00) ("Adjustment Amount"), multiplied by (b) the number of grade levels by which the Buyer's A.M. Best Rating has been improved over the Base Rating.

• It is further clarified that should the rating of the debentures exceeds the Base Rating, it shall have no effect on the interest carried by the debentures as of said date.

• Adjusting the interest rate for the Debentures as set forth in this section above shall not apply in the event of a decrease of the rating of the Company below the Base Rating, that arises as a direct result of changing the rating scale of the different rating companies, as part of the adjustment of the local ratings to international ratings, if and insofar as relevant.

• Insofar as the Debentures (Series A) shall cease being rated for a reason dependent on the Company for a period that exceeds 60 days, before the final payment, provided that the interest rate as mentioned in sub-section (a) above was not increased, the cessation of rating shall be considered as a reduction of rating of the Debentures (Series A), to a rating lower by four levels from the Base Rating, as set forth in sub-section (a) above.

• In the event that the Buyer's A.M. Best Rating has been downgraded, the Annual Payment then due shall be decreased by an amount equal to the product of (a) the Adjustment Amount multiplied by (b) the number of grade levels by which the Buyer's A.M. Best Rating has been decreased below the Base Rating.

• For the avoidance of doubt, the provisions of Section 2.7.1 regarding the period in respect of which the additional interest shall be paid, shall also apply to the additional interest pursuant to this Section 2.7.2. It is clarified, that in any event, the Base Interest shall not be increased by more than 1% as a result of a downgrading of the rating compared to the Base Rating.

More Definitions of Base rating

Base rating. Rating of AA-. For the avoidance of any doubt, it is clarified that the Base Rating is the rating given to the Company's Debentures (Series B) by the Rating Agency on the date of the Debentures (Series B) Issuance. "The Additional Interest Rate": an additional interest granted to the Debenture holders at a rate of 0.25% per annum for one (1) each notch under the Base Rating and up to a maximum additional interest of 1.25% per annum, at the most. A. If the rating of the Debentures (Series B) by the Rating Agency (in the event of the replacement of a Rating Agency, the Company will provide the Trustee with a comparison between the rating scale of the Rating Agency being replaced and the rating scale of the new Rating Agency) will be updated during any interest period, such that the rating determined for the Debentures (Series B) shall be one notch lower or more from the Base Rating, (hereinafter: the “Downgraded Rating”), the annual interest rate to be borne by the balance of the unpaid principal of the Debentures (Series B) shall be increased by the additional interest rate or by a portion of this rate (as mentioned above) in accordance with the notches set forth above, and this in respect of the period commencing from the date of publication of the new rating by the new Rating Agency until the full repayment of the balance of the outstanding principal of the Debentures (Series B) or until the date of the upgraded rating in accordance with Section 5.2(E) below. If the interest rate was raised previously in respect of deviations from the aforesaid financial covenants in Section 5.3 below, then the increase in the interest rate in respect of the aforesaid rating downgrade shall be limited such that the overall additional annual interest (except in the event that there is entitlement to arrears) with respect to a decline in rating and failure to comply with the financial covenants shall in no event exceed 1.25%.

Base rating. An ilAA- rating (on the rating scale of Maalot). Wherever there is a reference to a rating according to Maalot’s rating scale, the intention is alternatively, to an equivalent rating of whoever shall replace it, which shall be set by a different rating

Base rating means a rating equal to BBB (mid) (or the equivalent) by DBRS.

Base rating. Rating of AA- (AA minus). For the avoidance of any doubt, it is clarified that the Base Rating is one notch below the AA rating given to the Company's Debentures (Series C) by the Rating Agency on the date of the Debentures (Series C) Issuance. "The Additional Interest Rate": an additional interest granted to the Debenture holders at a rate of 0.5% per annum for a downgrade of one notch below the Base Rating (i.e., due to a downgrade from the Base Rating to a rating of A+), additional interest at a rate of 0.25% per annum for one notch below a rating of A+, up to a maximum additional interest of 1.25% per annum(hereinafter: “Maximum Additional Interest Rate Due to a Rating Downgrade”).