Moody’s Default Probability definition

Moody’s Default Probability. Rating“ means, with respect to any date of determination, the rating as determined in accordance with the following, in the following order of priority; provided that, with respect to the Loan Assets generally, if at any time ▇▇▇▇▇’▇ or any successor to it ceases to provide rating services, references to rating categories of Moody’s shall be deemed instead to be references to the equivalent categories of any other nationally recognized investment rating agency selected by the Borrower (with written notice to the Administrative Agent), as of the most recent date on which such other rating agency and Moody’s published ratings for the type of security in respect of which such alternative rating agency is used:
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Moody’s Default Probability. Rating” (as applicable) of such Collateral Obligation will be (1) “B3” if the Collateral Manager certifies to the Trustee and the Collateral Administrator that the Collateral Manager believes that such estimate will be at least “B3” and if the Aggregate Principal Amount of Collateral Obligations determined pursuant to this clause (ii) does not exceed 5% of the Collateral Principal Amount of all Collateral Obligations or (2) otherwise, “Caa3”; (iii) with respect to any DIP Collateral Obligation, (x) the Moody’s Default Probability Rating of such Collateral Obligation will be the rating which is one subcategory below the facility rating (whether public or private) of such DIP Collateral Obligation rated by Moody’s and (y) the ▇▇▇▇▇’▇ Rating of such Collateral Obligation will be the facility rating (whether public or private) of such DIP Collateral Obligation rated by Moody’s; provided, however, if such facility rating has been withdrawn by Moody’s and a new facility rating has not been issued by Moody’s, the facility rating of such DIP Collateral Obligation will be the facility rating from Moody’s applicable to such DIP Collateral Obligation prior to such withdrawal; or (iv) if not determined pursuant to clauses (i) through (iii) above, “Caa3.” MOODY’S SENIOR SECURED LOAN (a) A loan that: (i) is not (and cannot by its terms become) subordinate in right of payment to any other debt obligation of the Obligor of the loan; (ii) is secured by a valid first priority perfected security interest or lien that is not a first priority in, to or on specified collateral securing the Obligor’s obligations under the loan; and (iii) the value of the collateral securing the loan at the time of purchase together with other attributes of the Obligor (including, without limitation, its general financial condition, ability to generate cash flow available for debt service and other demands for that cash flow) is adequate (in the commercially reasonable judgment of the Collateral Manager) to repay the loan in accordance with its terms and to repay all other loans of equal seniority secured by a first lien or security interest in the same collateral; and (b) the loan is not: (i) a DIP Collateral Obligation; or (ii) a loan for which the security interest or lien (or the validity or effectiveness thereof) in substantially all of its collateral attaches, becomes effective, or otherwise “springs” into existence after the origination thereof.
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Examples of Moody’s Default Probability in a sentence

  • For purposes of this Indenture, the terms Moody’s Default Probability Rating, M▇▇▇▇’▇ Rating and Moody’s Derived Rating, have the meanings under the respective headings below.

  • With respect to a Collateral Obligation whose ▇▇▇▇▇’▇ Rating or Moody’s Default Probability Rating cannot otherwise be determined pursuant to the definitions thereof, such ▇▇▇▇▇’▇ Rating or Moody’s Default Probability Rating shall be determined as set forth below.

  • For purposes of this Indenture, the terms Moody’s Default Probability Rating, ▇▇▇▇▇’▇ Rating and Moody’s Derived Rating, have the meanings under the respective headings below.

  • If at any time the Moody’s Default Probability Rating of any Loan has been, or is known will be, changed or withdrawn, the Collateral Manager shall update the Loan Tape on the next Measurement Date to reflect such event.

  • For the purposes of calculating compliance with clause (iv) of the definition of Concentration Limitations, Defaulted Obligations shall not be considered to have a Moody’s Default Probability Rating of “Caa1” or below or an S&P Rating of “CCC+” or below.

  • The Collateral Manager shall cause the Borrower to, or shall on the Borrower’s behalf, update the Moody’s Default Probability Rating]of each Loan whose Moody’s Default Probability Rating is determined pursuant to clause (iv) of the definition thereof within 12 months of the last rating estimate for each such Loan.

  • With respect to any Annual Period, from and after the Third Restatement Effective Date, a test that is satisfied so long as no more than two Rating Pending Loans either (i) received a ▇▇▇▇▇’▇ Rating Factor higher than the ▇▇▇▇▇’▇ Rating Factor assigned to such Rating Pending Loan under clause (C)(I) of the definition of Moody’s Default Probability Rating or (ii) failed to receive a Moody’s Credit Estimate within 90 days following the date the Borrower acquired such Loan.

  • The Borrower (or the Collateral Manager on behalf of the Borrower) shall update the Moody’s Default Probability Rating of each Loan whose Moody’s Default Probability Rating is determined pursuant to clause (iv) of the definition thereof within 12 months of the last rating estimate for each such Loan.

  • If at any time the Moody’s Default Probability Rating of any Loan has been, or is known will be, changed or withdrawn, the Borrower shall update the Loan Tape on the next Measurement Date to reflect such event.