Downgrade Risk definition

Downgrade Risk. The risk that securities are subsequently downgraded should a mutual fund’s investment adviser and/or rating agencies believe the issuer’s business outlook or creditworthiness has deteriorated.
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Examples of Downgrade Risk in a sentence

  • Because the High Equity Balanced Option invests in multiple mutual funds that, taken together, invest in a diversified portfolio of securities, it is subject to the following risks to varying degrees: Active Management Risk; Allocation Risk; Call Risk; Credit Risk; Currency Risk; Currency Management Strategies Risk; Derivatives Risk; Downgrade Risk; Emerging Markets Risk; Extension Risk; Fixed-Income Foreign Investment Risk; Foreign Investment Risk; Investment Objective.

  • Counterparty Rating Downgrade Risk: The Company will enter into OTC derivative transactions and Securities Financing Transactions only with those counterparties that it believes to be sufficiently creditworthy.

  • Downgrade Risk — The risk that securities are subsequently downgraded should a fund’s investment adviser and/or rating agencies believe the issuer’s business outlook or creditworthiness has deteriorated.

  • The Index Fixed-Income Option is subject to the following risks to varying degrees: Call Risk; Credit Risk; Downgrade Risk; Extension Risk; Fixed-Income Foreign Investment Risk; Income Volatility Risk; Index Risk; Interest Rate Risk; Issuer Risk; Liquidity Risk; Market Volatility, Liquidity and Valuation Risk; Prepayment Risk; and U.S. Government Securities Risk.

Related to Downgrade Risk

  • Investment Grade Ratings means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, provided that no negative watch is placed on such rating.

  • Investment Grade Rating Event means the first day on which the Notes have an Investment Grade Rating from each Rating Agency, and no Default has occurred and is then continuing under this Indenture.

  • Investment Grade Rating means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or an equivalent rating by any other Rating Agency.

  • Investment Grade Rating Date means the date on which the Borrower first obtains an Investment Grade Rating.

  • Downgrade Event means, unless otherwise specified on the Cover Sheet, for a Party means that Party’s Credit Rating falls below BBB- from S&P or Baa3 from Moody’s or becomes no longer rated by either S&P or Moody’s.